About 7,500 union workers at General Motors will take company buyouts as part of restructuring efforts, the struggling carmaker said Thursday, dpa reported.
The United Auto Workers members who accepted the deal make up more than 10 per cent of the organized labour at GM plants and most will leave the company by April 1.
GM and Chrysler have received 17.5 billion dollars in aid from the government to keep them afloat amid declining car sales and the global recession. As part of the agreement the companies submitted detailed restructuring plans to the government, which has until the end of the month to respond.
President Barack Obama, in a townhall-style meeting at the White House, said he would outline the government's plan for the car industry in the coming days.
"We need to preserve a US auto industry," Obama said, but warned that the country's carmakers still had to make some "drastic changes" to return to profitability.
The Wall Street Journal reported Thursday that the Obama administration task force studying the issue is likely to approve 22 billion dollars more in government aid, but that any further money would come with strict conditions.
The buyout programme was designed to encourage older and more expensive workers to leave the company. Since 2006, 60,500 employees have taken buyout offers from GM.
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