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.

– By: Omar Rana

Source: CNNMoney and Free Press