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Chrysler follows Ford on road for bonuses

by Gerald Magpily   |  Published January 31, 2011 at 1:54 PM

money-stack_125x100.jpgSome automobile sectors workers -- especially the rank and file -- are getting something they haven't had in a long time: a bonus. After ending 2010 with an operating profit of $763 million, Chrysler Group LLC CEO Sergio Marchionne said Jan. 31 during a conference call on the fourth quarter that his employees will be receiving a "performance award." The amount of the extra compensation will be revealed in about a week.

Chrysler, which emerged from Chapter 11 in June 2010 and is aiming for an IPO this year, is banking its revival on 16 new or redesigned vehicles. The Auburn Hills, Mich.-based company is following the same road as Ford Motors Co. by giving out a bonus this year. Ford announced its hourly workers will get profit-sharing checks of $5,000 each.

Meanwhile, General Motors Co. has made no announcements on bonuses but did say late last year that it will maintain a salary freeze for 2011. Ford appears to be the most stable company among its peers, GM and Chrysler, as analysts say the auto sector has stabilized but is far from being considered healthy.

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