Chrysler to dole out hourly, salary bonuses Payouts come as automaker rebounds
Chrysler Group will pay its hourly and salaried employees a performance bonus for their contributions in helping the company introduce 16 new or revamped vehicles in 2010, CEO Sergio Marchionne said today. Chrysler’s 22,000 U.S. and 7,600 Canadian hourly employees will receive $750 apiece, probably on Feb. 11, according to Mike Palese, a Chrysler spokesman. Chrysler’s salaried employees — 10,000 in the U.S. and 750 in Canada — will also receive a bonus, but Palese declined to specify the amount.
Employees received an email from Marchionne this morning notifying them of the payment. “It is a performance payment in recognition of what I consider to be extraordinary performance by the industrial side of the business. The way this house has responded to the introduction of 16 cars has been extraordinary,” Marchionne said in a conference call with analysts this morning. “We were able to get it done. It would have been inexcusable not to recognize what people have done.” Marchionne said the payments will be made even though Chrysler posted a net loss in 2010 of $652 million and a modified operating profit of $763 million for the year. The obligation to reward employees was more important than improving “bottom line profitability,” Marchionne said. “The fact that we’re now indicating we will be bottom line profitable suggests we did this with some degree of confidence.”
As seen in Automotive News, by Bradford Wernle January 31, 2011