Detroit – Chrysler Group will offer all of its 49,600 hourly workers in the U.S. up to $100,000 each to leave the company as part of a recovery plan announced this month.
The company, which lost $1.475 billion in 2006 and said it expects losses to continue through this year, said Feb. 14 it intends to shed 13,000 jobs, including 11,000 hourly positions and 2,000 salaried, as it tries to further shrink to match reduced demand for its products.
A company document obtained by The Associated Press outlines an early-retirement program for hourly workers near retirement age and a buyout program for those with at least one year of tenure with the company.
The offers were reported earlier Tuesday by The Detroit News.
Under the buyout offer, workers would receive a pretax lump-sum payment of $100,000 plus six months of medical and vision coverage in exchange for their departure.
The early-retirement package includes a $70,000 payment, health- care benefits and whatever pension a worker was eligible for based on age and years of service.
DENVER
Oppenheimer settles mutual-fund probe
OppenheimerFunds Distributor Inc. agreed to pay $494,500 to settle a state investigation into agreements the firm made with some financial companies.
Under the agreements, OppenheimerFunds allowed the companies “to submit mutual fund exchange requests on behalf of their clients in bulk, regardless of whether the firm was the broker of record on the accounts,” the Colorado Division of Securities said Tuesday in a release.
“Other firms could not place bulk exchange requests for client accounts directly with (OppenheimerFunds) unless the firm was the broker of record on the account.”
Under the settlement, OppenheimerFunds will terminate the agreements, pay $394,500 in restitution and pay a fine of $100,000 to the state.
DENVER
Mich. Quiznos stores seek class-action bite
A group of Quiznos franchisees in Michigan has filed a proposed class-action lawsuit against the Denver-based sandwich chain.
The suit, similar to one filed by a group of Wisconsin franchisees, alleges that the company misrepresents the nature of its contractual relationship with franchisees as well as the prospects for franchisee success.
The group claims the chain also oversaturates the market with franchises and requires owners to pay excessive prices for food and supplies.
Quiznos declined to comment on the lawsuit, adding that it would be “inappropriate” to comment on pending litigation.
GOLDEN
Zima light? Coors taps new flavors for spring
Molson Coors Brewing Co. is launching an updated version of its Zima flavored malt beverage, the company said.
Based on consumer research and testing, the company created three new citrus-based flavors that are lighter in carbonation and alcohol content, and lower in calories than the original formula. The new flavors – citrus, tangerine and pineapple citrus – will be available this spring.
DENVER
Daniels Fund tallies its first-quarter grants
The Daniels Fund approved $11.4 million in first-quarter grants to fund programs serving the homeless, the aging, educational initiatives and the disabled.
The fund, established by cable pioneer Bill Daniels, will award a projected $38 million in grants and $13 million in college scholarships this year.
DENVER
Whiting Petroleum reports profits dip
Whiting Petroleum Corp. on Tuesday reported lower profit because of higher operating and exploration costs and lower crude-oil and natural-gas prices.
Denver-based Whiting posted fourth-quarter net income of $28 million, or 76 cents per share, on revenues of $186.6 million.
That compared with 2005 earnings of $38.3 million, or $1.05 per share, on revenues of $186 million.
DENVER
PacifiCare gives clinic $10,000 donation
The PacifiCare Foundation, now part of the United Health Foundation, contributed $10,000 to the Denver-based Inner City Health Center.
The nonprofit, volunteer- based health-care facility will use the grant to provide medical care to impoverished children.
DALLAS
CompUSA will unplug 126 computer stores
CompUSA Inc. plans to shut 126 shops by the end of May, more than half its stores, because of competition in the consumer-electronics market.
The closings will leave 103 stores, the company said Tuesday in a statement.
CompUSA also said it will receive $440 million in additional capital in the restructuring. A call to spokeswoman Jessica Nunez seeking comment wasn’t immediately returned.
AUSTIN, Texas
Pending TXU Corp. sale spurs legislation
TXU Corp.’s proposed sale to an investor group for $45 billion, the largest-ever leveraged buyout, would need state approval under a bill that advanced out of a Texas Senate committee Tuesday.
The sale, to investors led by Kohlberg Kravis Roberts & Co. and Texas Pacific Group, would need approval from the state Public Utility Commission under the legislation, said Sen. Troy Fraser, a Republican from the town of Horseshoe Bay. Dallas-based TXU said Monday it wouldn’t need state approval for its proposed sale.
NEW YORK
4th-quarter report has CBS in the black
CBS Corp., producer of “60 Minutes” and the hit crime series “CSI,” swung to a profit in the fourth quarter from a year ago, a period that included a major charge to write down the value of its television and radio businesses, the company said Tuesday.
In the fourth quarter, CBS reported net income of $335 million, or 43 cents per share. A year ago, the company posted a loss of $9.14 billion, or $12 per share.
WASHINGTON
Fannie Mae makeover may cut $200 million
Fannie Mae said Tuesday that its recent cost-cutting measures should yield a $200 million reduction in operating expenses this year as the mortgage giant continues to remake itself in the aftermath of its multibillion-dollar accounting scandal.
The government-sponsored company also noted that its internal financial controls continued to be weak last year.
