UPDATE 1-GM, Chrysler offer workers cash, cars to leave

DETROIT, Feb 2 - General Motors Corp and Chrysler LLC are offering a new round of retirement incentives including vouchers for cars and buyouts to hourly workers as the automakers move to reduce workers and inventory.

GM is offering its U.S. hourly workforce $20,000 in cash and a $25,000 voucher to buy a vehicle as an incentive to retire or leave the company, one United Auto Workers union local president said on Monday.

The No. 1 U.S. automaker declined to comment.

Chrysler's program offers retirement-eligible workers $50,000 in cash and a voucher of $25,000 for a new Chrysler vehicle if they leave, according to a person with direct knowledge of the offers.

Workers who opt to leave Chrysler with no retiree health care benefits get $75,000 and a $25,000 car voucher, the person said.

GM notified the UAW locals of the plan on Monday, the union official said, adding that certain restrictions were being placed on the company by the U.S. government, including restrictions on the use of pension funds to pay for the buyout program.

Two other GM union officials said they have been told a buyout program was coming, but have not been briefed on the details yet by the UAW or GM.

Both GM and Chrysler are under pressure to meet certain cost cutting targets, including labor cost cuts and debt restructuring, by Feb. 17 under terms of the emergency loans the two companies received from the U.S. government.

Chrysler said in a statement that the challenging U.S. auto market has prompted the automaker to offer a new round of attrition program for all its UAW represented workers.

"Given the difficult economic and market conditions in the U.S., Chrysler LLC determined in December 2008 that it would offer another phase of Special Programs," Chrysler spokeswoman Shawn Morgan said. "The window election period for the majority of hourly represented skilled and non-skilled employees is between Feb. 2 and Feb. 25."