GM spokesman Tom Wilkinson said the offer 'is available to all 62,000 hourly employees' covered by the United Auto Workers (UAW) union.

'Of those, approximately 22,000 are retirement-eligible, so taking the incentive would move them into retirement,' he said.

'The goal is to allow us to hire more tier-two workers (who start with a lower wage and benefit cost) once business starts to pick up again.' GM's current contract with the UAW allows the company, with the union's consent, to offer buyouts if business conditions warrant cutbacks.

The news came two days after GM said it would cut 10,000 white-collar jobs worldwide this year as part of a restructuring plan the struggling automaker submitted to the government in exchange for an emergency loan. -- AFP