Chrysler Announces Cost-Cutting Plan: Chrysler Corp. said...

Chrysler Announces Cost-Cutting Plan: Chrysler Corp. said it plans to cut its white-collar staff by about 2,300 people as part of a $1-billion cost-reduction effort designed to restore its competitiveness in a soft U.S. auto market. The job cuts represent about 8% of Chrysler’s U.S. corporate staff of 31,000, and the auto maker said it hoped the reductions would be done mainly through early retirements and attrition. In addition, Chrysler said it set up a special bonus program for its top 2,000 managers, who will invest up to 10% of their annual salaries over the next 15 months and be repaid only if the company meets its cost-reduction goals. “Car and truck business in the United States is undergoing a dramatic and permanent transformation that puts enormous pressures on all manufacturers to get their programs and costs in line,” said Chairman Lee A. Iacocca.