Chrysler LLC confirmed Thursday that it will no longer pay retention bonuses as part of the cost-concessions needed to secure more funding from the U.S. Department of Treasury.

"No new retention payments or any other form of bonus, will be awarded after Jan. 2, 2009 as a result of the waivers signed by the company's top 25 executives," Chrysler said in a statement on its Web site. "We continue to work with the U.S. Treasury on a daily basis."

Chrysler and General Motors Corp. (GM) are racing to secure new cost cuts from its executives, suppliers, unions and dealers in order to receive additional low-interest loans to avoid bankruptcy. Details on the company's progress in winning these cost-concessions must be submitted by March 31. Chrysler is working to obtain another $5 billion in funding after already $4 billion earlier this year.

-By Jeff Bennett, Dow Jones Newswires; jeff.bennett@dowjones.com; 248-204-5542