5/14/09

Chrysler to cut 800 dealers, planning to avoid cap on executive pay


According to a Stephen Lerner, a lawyer seeking to represent Chrysler dealers, said today that the company plans to cut 800 of its 3,200 dealers on Thursday. Chrysler will provide the U.S. bankruptcy court with a list of dealers it wants to retain.

“We do not have any finalized list as of this point in time,” Chrysler spokeswoman Kathy Graham said. When asked if Chrysler would soon provide a list she said: “It’s too early for us to say. We’re not through that process yet.”

In a separate report, Chrysler and Fiat are looking for a way to get around a government-imposed restriction on executive pay by having its top officers become Fiat employees. It was reported earlier this month that the next CEO of Chrysler will have his/her salary capped at $500,000.

In the meantime, Chrysler continues trying to reach its goal of reducing 3,500 more autoworkers by offering buyouts.

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