Chrysler to build new plant in Michigan
With all the news surrounding the possible sale of Chrysler, it's nice to know that the forlorn automaker is still looking to the future and revamping aging production centers.
An announcement is expected later this week regarding a new axle plant that will supposedly be built somewhere northeast of downtown Detroit. The $700 million plant, designed to replace another axle plant in Motown, is expected to be in operation by 2010 and will employ some 900 workers.
Information about the factory comes via the Detroit News, who's union sources indicate that the work rules for the new plant are up for a vote today, while at the same time, the Michigan Economic Growth Authority is mulling over tax incentives for Chrysler. If all goes according to plan, expect an announcement this Wednesday, as Governor Granholm, UAW Pres Ron Gettelfinger and Chrysler's CEO, Tom LaSorda take to the podium.
[Source: Detroit News]
Reader Comments (Page 1 of 1)
brimg87 9:01AM (4/17/2007)
Good news for Michigan!
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the marais 9:07AM (4/17/2007)
Northeast of downtown Detroit, eh? That would put it in the river or in Canada.
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Chuck 9:47AM (4/17/2007)
#2, actually that's a common misconception of the layout of the city, one that got me lost here many times when I first moved here, but the city actually primarily runs east west, with Canada South! of the city. The river curves south and to the west here.
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Will 2:42PM (4/17/2007)
Please correct me if I'm wrong in any of this:
The foreign automakers that have set up shop here in the US, (Toyota, Honda, Hyundai,etc), have spent a good amount of time researching their future plans. Toyota not only built a plant in Texas, but had a marketing campaign in place to appeal to the local populace, and, more importantly, located the plant as far from the UAW's reach as they could.
Having read a good deal about the struggles of the "Big 2.5" in recent years, I have noticed the rucurring involvement of the UAW, an organization that seems to benefit the union's leaders more so than the workers they represent.
Is it only my opinion then, that placing a new plant in the middle of "UAW Country", whilst in the middle of financial woes, a bad idea?
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Don 5:04PM (4/17/2007)
So let's get this straight: Daimler's going to pony up for a $700 million plant while they're doing all they can to get rid of Chrysler?
Uh uh.
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Jim Sanders 12:08AM (4/18/2007)
This plant REPLACES an old plant.
I would imagine a new plant is more modernized and automated.
So how many workers is the old plant currently employing?
The $700 million goes into modernizing, robotizing, and getting rid of inefficient humans.
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Jim Sanders 12:21AM (4/18/2007)
http://www.daimlerchrysler.com/dccom/0-5-8793-1-594361-1-0-0-0-0-0-91-7155-0-0-0-0-0-0-0.html
I was dead on the mark. The current plant uses far too antiquated manufacturing methods, employee a staggering 1,926 empoloyees.
It is necessary to replace 1,026 of these employees with precision robots that do not make mistakes, costing Chrysler $billions in axle recalls and repairs.
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