Chrysler will not follow its U.S. rivals to offer pension buyouts. Analysts said Ford Motor Co (NYS: F) and General Motors are following pension buyout plans to white-collar retirees. The plan will reduce the automakers’ pension obligations that increased to record levels during 2011.
Ford will make offer to 98,000 people and GM will make offer to 42,000 for exchanging their monthly checks for a one-time payment. U.S. auto manufacturers have been losing market share to international auto manufacturers in their own country. Pension costs have become an impediment for the U.S. auto manufacturers.
At the end of 2011, market value of Chrysler was about $7.5 billion with around $32 billion pension obligation. Chrysler has got 130,000 plus retirees. Roughly 30,000 are former employees who are paid an annual salary whereas the remaining are retired hourly workers.
During 2009 before its U.S.-funded bankruptcy, the company came out from the verge of collapse. Marchionne has been the in charge of Chrysler from that time.
In the first five months of the year, sales of Chrysler in the United States have soared by roughly 30 percent against the overall U.S. auto market rise of 13.4 percent.Previous Post » Stock Market Report For Yesterday