Auburn Hills,, Mar 3, 2006 –
More than 62,000 eligible Chrysler Group retirees, non-bargaining and United Auto Workers-represented bargaining unit employees in the United States will share more than $40 million today when the Company distributes its profit sharing payout.
The 2005 profit-sharing checks, which averaged $650 among hourly and salary-represented employees, provided an additional economic boost to the areas where Chrysler Group plants and facilities are based.
The largest portion of these payments was distributed in the states that are home to Chrysler Group’s manufacturing facilities. In Michigan, 29,400 employees received profit sharing payments equaling $20 million; the 8,400 employees in Indiana received $6 million; and in Ohio, $4.8 million was disbursed among 7,200 employees. Between 1999 and 2005, the total profit sharing amount for Chrysler Group eligible employees equaled $717 million in states where key facilities and plants are located (Indiana, Ohio and Michigan) and provided more than $1 billion in taxable income for principal states, including Alabama, Arizona, Delaware, Illinois, Indiana, Missouri, Michigan, Ohio and Wisconsin.
The financial impact on the economy will provide a welcome boost to the economy and local businesses as well. The potential economic impact of the Chrysler Group profit sharing increases beyond $40 million because of the ripple effect: An increase in spending by one person generates additional income for another person, who then will spend a portion of this extra income, generating additional income for someone else. This chain of events is repeated over and over, increasing economic activity far beyond the initial level of profit sharing checks.
In anticipation of the checks, many retail merchants in plant communities, including local dealerships, are offering Chrysler Group employees special discounts on purchases or giving them special offers.