Chrysler’s restructuring plan seems to be implemented without any unwanted hue and cry as 40 percent additional workers signed the company’s compensatory offer.
Luxury carmaker posted a $1.5 billion profit loss last year, and to roll in the market again company plan to cut its expenditure by reducing its workforce and locking its loss making units. Automaker had a plan to slash nearly 4,700 hourly U.S. workers this year, but about 6,400 U.S. hourly workers shows their keenness to leave the company through the programs being offered.
Chrysler, with other western automakers, has lost its market shares to Asian rivals such as Toyota, Honda and Nissan with leaner cost structures. In their restructure plan all automakers stars slashing jobs to cut their extra expenditures through a program Jobs Bank, where workers receive much of their pay and benefits despite not working. Chrysler is offering as much as $100,000 to leave the company.
But with the more than wanted acceptance rate on the buyouts and early retirement offers has stunned the Chrysler and company is trying to handle the situation through negotiation. Automaker is working with the employees and the United Auto Workers to negotiate about the possible cut, but company shows their reluctance to accept all.
DaimlerChrysler shares were up 1.4% at $86.96 in recent trading on the New York Stock Exchange. The stock reached a 52-week high of $92.25 on June 1.
Via: CNN
