DaimlerChrysler Offers Retirement Incentives

DaimlerChrysler’s U.S. unit said it agreed with the United Auto Workers union on voluntary retirement incentives of $35,000 per worker as the auto maker tries to cut a fifth of its Chrysler work force. Half of the incentive amount would be a one-time cash payment, with the rest going toward buying a selected Chrysler, Dodge or Jeep vehicle, the company said. Eligible hourly workers must be 60 years old with at least 10 years of service; have 30 years of service; or be 55 to 59 years old and have combined age and service years of at least 85. The world’s fifth-largest auto maker is trying to cut costs at its U.S. unit, based in Auburn Hills, Mich., which is expected to lose at least $2 billion this year. The Stuttgart, Germany-based company last month said it will reduce the Chrysler work force by 26,000 employees, including 19,000 hourly workers, during the next three years. The company said 26,620 workers are eligible under the hourly package or similar incentives already offered to salaried employees. The retirement offer for salaried workers covers 4,600 people in the U.S. and 320 in Canada, and they have until Feb. 28 to accept, a company spokeswoman said. DaimlerChrysler shares rose 87 cents to close at $50.07 on the New York Stock Exchange.