Auto supplier American Axle is adding to the wave of buyouts sweeping the U.S. industry by offering a range of incentives of up to $100,000 (euro78,839) to about 6,000 hourly workers at five plants, the company announced Wednesday.
American Axle & Manufacturing Holdings Inc. said it is withdrawing its 2006 financial guidance because of the cost of the buyouts. The Detroit-based company had forecast full-year earnings in the range of $1 (euro.79) to $1.10 (euro.87) per share.
American Axle said it expects to spend $150 million (euro118.26 million) to $250 million (euro197.1 million) in 2006 on the program and other restructuring measures.
The buyouts and early retirement deals are being offered at plants located in Detroit, Buffalo and three other locations. The offers are for workers represented by the United Auto Workers, and there about 6,000 of them at those plants, company spokeswoman Carrie Gray said.
The offers range from a $50,000 (euro39,420) incentive for retirement-eligible workers and $100,000 (euro78,839) buyouts for workers with more than 10 years of service to an education incentive of two or four years for tuition and living expenses.
"The unprecedented, yet necessary, structural transformation of the domestic automotive industry is continuing at a rapid pace," Chairman and Chief Executive Richard E. Dauch said in a statement.
"AAM's special attrition program is necessary at this time to realign our work force with actual and projected production and market conditions."
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