/ Chrysler, Ford, General Motors, Industry, News / Detroit three employees to receive cash bonus

Detroit three employees to receive cash bonus

Linked In Share
Detroit three employees to receive cash bonus

Chrysler salaried and hourly employees were told they’ll be getting profit-sharing checks after the maker reported earnings of $1.8 billion in 2013. Based on a formula that UAW workers ratified in a 2011 contract, workers should expect a maximum profit sharing check of about $2,500 before taxes.

That would be the highest profit-sharing check for Chrysler hourly workers since 1999. Last year, Chrysler workers profit sharing checks averaged $2,250 before taxes.

While employees may be happy to get the extra cash, the amount is about a quarter of the $8,800 checks about 47,000 Ford employees are expecting to get. On Tuesday, Ford Motor Co. announced fourth-quarter earnings of $3 billion and a full-year profit of $7.2 billion. This year’s checks also surpassed last year’s average payout of $8,300.

General Motors workers are expected to receive checks of more than $6,750, which is what they received last year. GM reports year-end earnings on Feb. 6.

In all, the Detroit Big Three are expected to hand out a record-setting $800 million in profit sharing checks to 130,000 hourly workers, providing an economic boost in states laden with UAW-represented workers. Last year, 125,000 workers shared in $780 million in profits, which was the previous record.

The formula for determining profit sharing changed with the 2011 contract. At GM and Ford, the formula is based on automaker profits in North America, not just from the U.S. Employees get $1 for every $1 million in North American pre-tax profit, on average. At Chrysler, workers get $1 for every $1 million in profits, based on 85% of Chrysler’s worldwide profit.

It is the third straight year all three automakers have paid workers at least $1,500 on average while GM and Ford have done it for four consecutive years. Before that the automakers paid very little in profit sharing as they dealt with difficult financial situations, including the expedited bankruptcies of GM and Chrysler.

by Aurel Niculescu (my Google+) - Thursday, January 30th, 2014 - filed under Chrysler, Ford, General Motors, Industry, News. Image credit: .
Linked In Share
Related Articles


Discuss: Detroit three employees to receive cash bonus

Leave a Reply


















Inautonews Facebook PageInautonews RSS FeedInautonews TwitterInautonews Youtube Channel

Sign up to receive our email newsletter on your email. It's safe. No spam!

Mercedes fixes flaw in Hamilton’s failed engine
Mercedes fixes flaw in Hamilton’s failed engineMar.29 (GMM/Inautonews.com) The part that caused Lewis Hamilton's retirement in Australia was worth less than a single ...
Heavy drivers deliberately dehydrating – Button
Heavy drivers deliberately dehydrating – ButtonMar.29 (GMM/Inautonews.com) F1 drivers are deliberately dehydrating in order to get their weight down at grand prix ...
Rosberg admits team orders ‘inevitable’
Rosberg admits team orders ‘inevitable’Mar.29 (GMM/Inautonews.com) A year ago, the Malaysian grand prix sparked the infamous 'Multi 21' team orders scandal. But ...
Ecclestone working hard to turn up the volume
Ecclestone working hard to turn up the volumeMar.29 (GMM/Inautonews.com) If a question ever requires a cool answer, reporters flock to 'iceman' Kimi Raikkonen. The tamer ...
Conspiracy theorists leap on F1 criticism
Conspiracy theorists leap on F1 criticismMar.29 (GMM/Inautonews.com) Amid all the moaning about F1's lower volume, the conspiracy theorists are now beginning to raise ...
FIA rules out scrapping fuel flow sensors
FIA rules out scrapping fuel flow sensorsMar.29 (GMM/Inautonews.com) F1's governing body has ruled out scrapping the new rule limiting fuel flow. With Red Bull already ...
Formula E could snap up F1′s New York race
Formula E could snap up F1′s New York raceMar.29 (GMM/Inautonews.com) The new FIA-sanctioned electric single seater series Formula E could sweep in and snap up a New York ...
BMW expands U.S. plant’s capacity by 50 percent, Confirms X7 crossover
BMW expands U.S. plant’s capacity by 50 percent, Confirms X7 crossoverBMW announced it is expanding capacity at its U.S. plant in Spartanburg, South Carolina, by 50 percent to 450,000 vehicles from ...
Ford CEO’s 2013 paycheck was 10.7 percent bigger at $23.2 million
Ford CEO’s 2013 paycheck was 10.7 percent bigger at $23.2 millionFord CEO Alan Mulally got a significant raise in 2013 as his total compensation increased 10.7 percent to $23.2 million, based in ...
Tesla announces battery shield fix for Model S fires
Tesla announces battery shield fix for Model S firesNHTSA opened its Tesla Motors announced it will add battery shields underneath its Model S electric sedan following a four-month ...
Opel to end sales in China after failing to gain traction
Opel to end sales in China after failing to gain tractionGeneral Motors Co.’s Opel unit, on Friday has announced it will stop selling cars in the Chinese market – and will focus more ...
2015 Chrysler 200 gets rated at 36 mpg
2015 Chrysler 200 gets rated at 36 mpgThe 2015 Chrysler 200 has been recently rated at 36 mpg, on the highway, when equipped with the 2.4 liter four-cylinder ...
Next-gen Audi Q7 to debut in 2015
Next-gen Audi Q7 to debut in 2015The second generation of the Audi Q7 will be introduced in late 2015 as the popular SUV will be riding on a new platform and get ...
Hyundai Motors Celebrates the Six Million Vehicles Sold in the European Market
Hyundai Motors Celebrates the Six Million Vehicles Sold in the European MarketHyundai Motors has reached a new milestone in Europe: 6 million vehicles sold here since 1977 when the automaker started sales in ...
Panasonic in Doubt Regarding Investment in Tesla’s Massive Battery Plant in the US
Panasonic in Doubt Regarding Investment in Tesla’s Massive Battery Plant in the USPanasonic Corp, Tesla's main supplier of lithium-ion cells for the Model S sedan, hasn't committed to make investments in Elon ...
Read more automotive news


2013 Frankfurt Motor Show Live Images

BMW Celebrates its Commitment in the USA in Spartanburg, SC Left to Right: Secretary Robert Hitt, South Carolina Secretary of Commerce Dr. Norbert Reithofer, Chairman of the Board of Management, BMW Group Secretary Penny Pritzker, US Secretary of Commerce Nikki Haley, Governor of South Carolina Mr. Manfred Erlacher, President and CEO, BMW Manufacturing (03/2014)
toyota hilux arctic 6x6 1
Spied-VW Golf GTI Club Sport 001
ferrari 458 italia crash london 1
lamborghini-aventador-50th anniversario tuning carlex design 1
2014 volvo united states 1
Ford's 2.7-liter twin-turbo V6 Ecoboost engine
Mercedes-Benz CLA RevoZport 1
Toyota Corolla second best-seler car in 2013
Trion Supercars Nemesis 1
David Brown Speedback inspired by Aston Martin - the car
2014 Toyota TS040 HYBRID side view

More automotive from inautonews
BMW announced it is expanding capacity at its U.S. plant in Spartanburg, South Carolina, by 50 percent to 450,000 vehicles from 300,000 currently. In order to do that, the company will invest $1 billion, with the plant set to become BMW Group’s biggest facility in the world. Spartanburg is ...
read more
Inautonews Editors Section
Test Drive: Renault Captur 0.9 – TCe 90 – fast review
Test Drive: Renault Captur 0.9 – TCe 90 – fast review After we’ve tested almost all Renault Captur models, we decided to check out the 3-cylinder engine - 898 cc 66kw (90 hp) model. Why we’ve ...
Test Drive Fiat 500L Living – Review
Test Drive Fiat 500L Living – Review Who ever thought in 2007, when Fiat unveiled the new 500 citycar that the Italian automaker will ever build a seven-seater 500 model. Clearly, ...
Test Drive Fiat 500L Trekking – Review
Test Drive Fiat 500L Trekking – Review Fiat had a great success back in the 60’s with the 500 model. It was cheap, practical and equipped with a 479 cmc petrol engine – that’s why ...

Editors Section
Inautonews Editors Section
2011 Safest Cars [Video] 2011 IIHS Safest Cars [Video] 2011 EuroNCAP Safest Cars 2010 Safest Cars [Video] 2009 safest cars Euro NCAP

Latest in Safety Research: Mercedes-Benz the Automaker With the Fewest Vehicle Recalls in the USAccording to a recent study on safety recalls in the US, German automaker Mercedes-Benz has ... Recall roundup: Toyota Avalon for airbag problemsToyota has issued a recall for more than 100,000 units of the Avalon sedans, because of a problem ...
Safety Section