Chrysler may fall short of 10,000 buyouts: UAW

By Kevin Krolicki

DETROIT (Reuters) - Chrysler LLC may fall short of its target of getting 10,000 U.S. factory workers to accept buyouts or early retirement, raising the prospect the automaker will have to increase its offers, a senior union official said on Wednesday.

"I don't think we will get quite 10,000," said General Holiefield, a United Auto Workers vice president. "With the economy the way it is, people are trying to hold on to what they have ... Jobs are not that easy to find."

The comments were the latest indication the Detroit-based automakers are finding fewer takers for their most recent round of buyouts and early retirement offers, even as pressure mounts on the companies to cut costs amid slumping U.S. sales.

Chrysler's larger rivals Ford Motor Co (F.N: Quote, Profile, Research, Stock Buzz) and General Motors Corp (GM.N: Quote, Profile, Research, Stock Buzz) are offering buyouts to all of their UAW-represented workers. Chrysler has made its offers on a plant-by-plant basis as it aims to cut 8,500 and 10,000 hourly jobs this year.

Holiefield said Chrysler, majority-owned by Cerberus Capital Management LP CBS.UL, might have to negotiate richer buyout offers if it falls short of its target.

"We may have to enhance the packages some or get more creative in that area, but so far I think they are doing pretty good," he said.

Holiefield declined to say if he thought Chrysler would achieve the bottom of its target range for job cuts -- 8,500. The struggling automaker is trying to cut costs and winnow slower-selling models from its lineup.

He said it would be several weeks before the union had a more complete view of the number of buyouts. "I would think that maybe in another couple of weeks or so we may have a better barometer," he said.