Chrysler spending $1.78bil on new Michigan plants
Looks like fears of a possible sale aren't scaring the product planners at Chrysler. Recognizing that the show must go on, the group announced a plan to build $1.78 billion worth of capacity over the next few years. According to this Automotive News piece, a new $730 million engine plant is a big part of that plan. The plant will be built in Trenton, Mich. and will concentrate on the production of the automaker's new range of fuel-efficient V-6 "Phoenix" engines. Also in the works are a new $700 million axle plant in Marysville, Mich., and a $300 million investment in the paint shop at their Sterling Heights, Mich. assembly plant.
Chrysler had actually announced many of these upgrades in February, when they pledged about $3 billion to build and revamp plants for the new engines, and the new investments don't change the fact that Chrysler is still planning to cut 13,000 jobs in their overall plan to return to profitability by 2008. New fuel-efficient engines and a renewed focus on cars is hoped to be the solution for record losses due to lower demand for the company's trucks and SUVs. Everybody loves the Hemi, but it ain't exactly a gas-sipper. As part of the new announcement, The Michigan Economic Development Corp. (a state agency) said Chrysler would be getting $11.2 million in tax concessions over the next eight years.
[Source: Automotive News, sub. req'd]
Reader Comments (Page 1 of 1)
J B 2:55PM (4/18/2007)
chrysler should blackball toyota and build plants next to toyota plants. Hello toyota, my name is chrysler, meet my friend UAW, you guys are neighbors now!
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Abe 3:32PM (4/18/2007)
#1 I love it. That is a perfect idea. Lets see how Toyotas profit margins are if they have to start giving employees the same kind of benifits US automakers have been giving for years.
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Guenther 4:08PM (4/18/2007)
Surprising as it is, it is nice to see someone invest in MI. Now if they could somehow keep the union out and reap the same profits non-union plants make...
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jwhite 4:29PM (4/18/2007)
Part of the deal to get the new plant was that the Union agreed to new work rules that allows them to do more than one job and have fewer classifications.
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hoeun kim 2:42AM (4/19/2007)
what i dont understand is that people will blame UAW for taking money out of the company and driving the company down, but instead of thinking of ways to improve the situation, they wish ill upon companies that dont have that problem by infecting them with it. really, boggles my mind.
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