The GM buyout offer is reported to be significantly lower than the offer given by cross-town rival Chrysler. Chrysler is giving $50,000 and a $25,000 voucher to eligible workers. Employees not up for retirement will receive $75,000 in green-backs and a $25,000 voucher.
The buyouts will allow Chrysler and GM to lower fixed labor costs, and when (if?) times get better, new hires will receive a far lower wage with less extravagant benefits. With the death of the jobs bank and a rash of recent shift reductions, there is a strong chance for a high take rate of buyouts.
[Source: Bloomberg | Photo: Getty/Pool]