Amidst the controversies not to mention the billion dollar losses that DaimlerChrysler AG’s Chrysler Group is facing it still plans to build two new plants in Michigan and upgrade three others.
The said plan is to be formally announced late Wednesday morning includes a new $700 million axle plant in Marysville, Michigan, and a new $730 million plant in Trenton Michigan where the next generation Chrysler V6 engine are to be produced according to company spokesman Mike Aberlich.
Chrysler AG also plans to build a new $300 million paint shop at Sterling Heights Michigan plant where it manufactures the Chrysler Sebring and Dodge Avenger. The company likewise plans to invest $50 million in its Warren, Michigan, stamping and assembly complex which now builds the Dodge Ram and Dakota pickup trucks. The company also added that a new version of the Ram is coming out in 2008.
The new axle plant will replace the Detroit axle plant which was built way back in 1917 and now employs more than 1,600 workers. The official announcement of the plants was to be made Wednesday by Chrysler, United Auto Workers president Ron Gettelfinger and Michigan Governor Jennifer Granholm.
The members of the United Auto Workers Local 961 at the Detroit Axle plant have been voting on new work rules which the company says are very important in building the plant, enabling employees to work in teams and to accomplish multiple jobs. The said rules are similar to those approved by the union before Chrysler built its new four-cylinder engine plant.
The Detroit Axle plant specializes in making front-and-rear-drive axles for many of Chrysler Group truck products including some of its
diesel performance parts. The plant also makes the trailing axles for Dodge and Chrysler minivans and creates their respective
diesel performance part components as well. It is in the Detroit Axle plant that powertrain components for the Chrysler 300, Dodge Magnum and Dodge Charger cars are built.
The announcement of the new plants come as Chrysler’s German parent talks with potential buyers for its US operations. According to Chrysler officials they have to modernize their facilities in order to become more competitive. The new axle plant will come complete with robotics technology and will enable the company to do the same work with fewer employees.
The new investments will help Chrysler to roll out products with much improved fuel efficiency and performance said LaSorda. The improvements of the plants are also part of the company’s commitment to invest $5.8 billion to $6 billion per year in its operations, LaSorda further added.
