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post #1 of 7 (permalink) Old 11-16-2011, 09:10 AM Thread Starter
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Exclamation Chrysler Announces $1.7 Billion Investment

Chrysler Group LLC Announces $1.7 Billion Investment for Next Generation Jeep® SUV; Plans to Add Second Shift of Production at its Toledo, Ohio, Complex

Chrysler Group Chairman and CEO confirms future plans for Toledo Assembly Complex at event with Ohio Governor

More than 1,100 jobs to be added on second shift in late 2013

Investment includes $500 million to expand plant, adds body shop and upgrades at Toledo facility

State-of-the-art Metrology Center part of expansion

Announcement brings total U.S. investment to more than $4.5 billion since June 2009


November 16, 2011 , Toledo, Ohio - Chrysler Group LLC announced today that it will invest $1.7 billion to support the development and production of the next generation Jeep® SUV in 2013, including $500 million at the Toledo Assembly Complex (Ohio). As a result, the Company will add a second shift of production or about 1,100 jobs, bringing total employment at the complex to over 2,800.

Chrysler Group Chairman and CEO Sergio Marchionne, along with Ohio Governor John Kasich, U.S. Representative Marcy Kaptur, Toledo Mayor Mike Bell, UAW Regional Director Ken Lortz, and other local officials joined employees to celebrate the news.

Marchionne confirmed that the new Jeep D-segment SUV would be built in the Toledo facility for export to markets all over the world.

“Earlier this year, I promised that I would have good news to share about our Toledo operations, so I am pleased to be able to make this announcement, which further demonstrates our commitment to the special relationship that Chrysler and the City of Toledo have shared,” said Marchionne. “Over many decades, Chrysler has become a part of this community’s fabric. With this investment and the addition of more than a thousand jobs, we continue to play our part in contributing to the city’s industrial and social development. Most importantly, this investment recognizes the support of the UAW and the role that our skilled and dedicated workforce has played in producing some of the finest, most recognized vehicles on the road today.

“I want to thank Governor Kasich and Mayor Bell for working with us to make the business case for this investment. I would also like to thank Congresswoman Kaptur and all of the federal, state and local officials for their ongoing support,” said Marchionne.

The $500 million investment in the Toledo plant includes a 260,000-square-foot expansion of the existing body shop and upgrades to all other areas of the assembly plant. In addition, Chrysler will add a state-of-the-art, 26,000-square-foot Metrology Center, which will help improve vehicle quality by verifying key measurements to ensure accurate fit and finish. The remainder of the $1.7 billion will be invested in other Chrysler Group facilities in the U.S., supplier tooling and other related development costs.

Work on the plant will begin in the fourth quarter of 2011 and continue through 2012. The Toledo North Assembly Plant currently builds the Jeep Liberty and Dodge Nitro.

“This announcement continues the momentum that the Chrysler Group has experienced over the past 28 months,” said General Holiefield, Vice President and Director of the UAW Chrysler Department. “Not only is the company continuing to invest in its facilities, but it is adding jobs and securing the future of our current workforce by demonstrating its commitment to the workers who have contributed to the Company’s remarkable turnaround.”

The second shift of production is scheduled to begin in the third quarter of 2013. When positions are available, they will be posted at Chrysler Group LLC Careers, where applications can be submitted online. No applications will be accepted at the plant.

With today’s announcement, Chrysler Group is planning to invest more than $4.5 billion in the U.S. and has made significant progress toward building a successful enterprise since June 2009, including:

reporting net income of $212 million in the third quarter of 2011;
reporting the 19th-consecutive month of year-over-year sales gains in October;
planning to invest $165 million to add a new one million square-foot body shop to its Sterling Heights (Mich.) Assembly Plant;
announcing a $72 million investment in the Toledo (Ohio) Machining Plant;
confirming a $114 million investment to repurpose about one-fifth or nearly 400,000-square feet of the Trenton North Engine Plant for the production of core components for the Pentastar engine produced at Trenton South;
investing nearly $1.3 billion into the Company’s existing transmission manufacturing facilities in Kokomo, Ind., to accommodate production of a new advanced front-wheel drive automatic transmission; increase capacity and support production of the World Engine and improve processes for the 62TE transmission program; and accommodate future production of a new highly fuel-efficient eight-speed automatic transmission;
announcing a $600 million investment in its Belvidere Assembly Plant;
confirming an investment of $850 million in its Sterling Heights Assembly Plant and surrounding stamping facilities;
planning an investment of $150 million in its GEMA (Dundee, Mich.) facility;
announcing in December 2009 that it will invest $179 million to launch production of the 1.4-liter, 16-valve Fully Integrated Robotized Engine (FIRE) at the company’s Global Engine Manufacturing Alliance (GEMA) plant in Dundee, Mich., creating more than 150 new Chrysler jobs;
adding a second shift of production – or nearly 1,100 jobs – at its Jefferson North Assembly Plant in May 2010;
adding nearly 900 jobs on a second shift at its Sterling Heights Assembly Plant in February 2011;
launching the all-new 2011 Jeep® Grand Cherokee in May 2010;
beginning production of the all-new Fiat 500, Dodge Durango, Chrysler 200 and Dodge Avenger in December 2010;
starting production of the 2011 Chrysler 300, Dodge Charger and Dodge Challenger in January.

About the Toledo Assembly Complex
The Stickney Plant was built in 1942 and acquired from Autolite in 1964 for use as a machining and engine plant. In 1981, it was converted for vehicle production, building the Jeep® Grand Wagoneer until the summer of 1991. The facility became the Toledo Assembly Plant when Chrysler Corporation acquired American Motors Corporation (AMC) in August 1987.

In the fall of 1997, Toledo North Assembly Plant was built for the production of the Jeep Liberty, which launched in April 2001. The 2007 Dodge Nitro launched in August 2006 and the 2008 Jeep Liberty launched in July 2007. In 2005, the Toledo Supplier Park was built to include body, paint and chassis operations in partnership with Kuka, Magna and OMMC, respectively, in brand new buildings on the same site as Toledo North Assembly and the former Stickney Assembly with Chrysler handling the final assembly of all three major components for the Jeep Wrangler and Wrangler Unlimited. Production of the 2011 Jeep Wrangler began in August 2010. In the first quarter of 2011, Chrysler Group assumed responsibility for the paint operations, previously managed by Magna.

About Chrysler Group LLC
Chrysler Group LLC, formed in 2009 from a global strategic alliance with Fiat S.p.A., produces Chrysler, Jeep, Dodge, Ram, SRT, Fiat and Mopar vehicles and products. With the resources, technology and worldwide distribution network required to compete on a global scale, the alliance builds on Chrysler Group’s culture of innovation, first established by Walter P. Chrysler in 1925, and Fiat’s complementary technology that dates back to its founding in 1899.

Headquartered in Auburn Hills, Mich., Chrysler Group’s product lineup features some of the world's most recognizable vehicles, including the Chrysler 300, Jeep Wrangler, Dodge Challenger and Ram 1500. Fiat contributes world-class technology, platforms and powertrains for small- and medium-size cars, allowing Chrysler Group to offer an expanded product line including environmentally friendly vehicles.

Rick

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post #2 of 7 (permalink) Old 11-16-2011, 09:12 AM Thread Starter
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Toledo Investment Announcement, Toledo, Ohio

Sergio Marchionne
Chairman and Chief Executive Officer, Chrysler Group LLC
Toledo Investment Announcement
Toledo, Ohio
November 16, 2011




Good morning to you all.

I’m delighted that you could join us here today for this significant announcement, one that has been a long time coming and will cement even further our bonds with this great community.

I would like to begin by thanking a number of people who played a big part in making this day possible.

First of all, I would like to thank you Governor Kasich and the State of Ohio for helping to ensure that our investment in Toledo operations makes competitive sense.

I also want to thank Mayor Mike Bell and the City of Toledo for working with us to strengthen the business case to bring investment and jobs to the community.

I also want to recognize Congresswoman Marcy Kaptur, who has been an important and steadfast supporter of the auto industry, and in particular Chrysler, especially during the recent recession when our company’s fate hung in the balance.

Finally and above all, I want to express my appreciation to our Chrysler people here at the Toledo Assembly Complex, along with our UAW partners, for helping us create a work environment dedicated to quality and with the flexibility to compete with the best plants anywhere in the world.

Your hard work, commitment and passion have been critical in our group’s ability to author a remarkable story of recovery.

I’m glad to see that Ken Lortz, who is UAW Regional Director, is among those here with us today.

UAW leadership had a difficult job in negotiating a new contract barely two years after two of the three Detroit automakers lived through a near death experience, and the scars of those moments are still fresh in our minds. But notwithstanding these difficulties, they conducted themselves with true professionalism and concern for the long-term future of their membership.

Just last month, UAW members ratified a new, four-year national labor agreement that rewards employees for contributing to the success of our Group while enabling us to remain on a competitive footing with other automakers.

As part of this contract, Chrysler pledged to spend an additional $1.3 billion dollars to retool and upgrade our production facilities and add as many as 2,100 new jobs nationally over the life of the contract.

We are taking a big step toward fulfilling that promise today.

I am extremely pleased to announce that Chrysler will invest $500 million dollars at this facility in the Toledo Assembly Complex, which in addition to improving safety, efficiency and quality of the plant, is part of a much larger investment of $1.7 billion that will bring a new advanced architecture that will be the basis for the group’s next-generation sport-utility vehicle beginning in 2013.

In fact this plant has been chosen to build the future Jeep SUV to replace the current Jeep Liberty that will be exported to markets all over the world.

Bringing this new architecture to Toledo will allow us to add a second shift of production, which means about 1,100 jobs more at this plant.

The new jobs will come on line in the third quarter of 2013.

Work on the manufacturing infrastructure, which includes the expansion of the existing body shop and the addition of a state-of-the-art Metrology Center to verify every vehicle’s dimensional quality, will begin in the next few weeks.

The decision we made clearly demonstrates the confidence we have in the Toledo Assembly Complex, in its future, and, moreover, in the commitment and quality of work of the people who work here.

It also reinforces the special relationship between Chrysler and the City of Toledo.

We have deep roots in this community.

Our Toledo complex is the home of Jeep, truly one of the world’s most legendary brands.

Toledo is in fact the birthplace of Jeep, and this year we are celebrating the brand’s 70th birthday.

Jeep has a great past, and an even more exciting future.

Jeep is at the heart of our plans to internationalize Chrysler, a process which is being accelerated by Chrysler’s access to Fiat’s distribution capabilities in Europe and Latin America.

Chrysler’s history is interwoven with that of Toledo’s industrial and social development. We have struggled together through some difficult moments, and at other times have shared the blessings of prosperity.

Generations of Toledo residents have worked for Chrysler, and our plants in the area -- Toledo Assembly Complex together with Toledo Machining Plant -- currently employ more than 2,600 people.

We are thrilled to be able to increase that employment total and we are proud to add a new chapter to our relationship with the City of Toledo, Lucas County and the State of Ohio.

Chrysler plays a vital part in the state and local economies. And so it is important that Chrysler is once again a viable enterprise, able to sustain and even grow our business.

Just 28 months ago, many observers doubted our ability to survive.

The new Chrysler began operations then, supported by loans from the U.S. Treasury and Canadian federal and provincial governments.

We borrowed that money with immense gratitude and with a deep sense of responsibility to justify the faith shown in us.

We paid back every cent, with interest, as fast as we possibly could.

We have revived the company, thanks to the tremendous efforts of a group of people who have embraced change, who deliver on their promises, and who are united by the passion to return Chrysler to its rightful place.

Our rejuvenated product portfolio has helped change perceptions about Chrysler and has driven gains in sales, market share and earnings.

Over a period of 19 months, we brought to market 16 all-new or significantly refreshed products, with new powertrains, world-class interiors and increased focus on detail and quality.

Independent surveys confirm that our unwavering devotion to quality is paying dividends.

These quality-improvement efforts run through the entire organization, especially through the World Class Manufacturing system that we are implementing here in Toledo as well as in our other plants.

And we are once again profitable.

In the third quarter, we posted a net profit of $212 million, and we are on track to meet our financial targets for the year despite the slow recovery of the economy.

You all are a crucial part of this recent history.

And I am here to thank you for all you have done, but more importantly for what and who you are.

We are building a solid base, together with our partner Fiat, on which to create the mosaic of the future organization.

A mosaic where every piece gets its strength from understanding the contribution it can make to the whole and from recognizing the value of the contribution of the other pieces.

We are certain that Toledo will be a key piece in this mosaic and in bringing our dream to reality.

Thank you all for coming.

Rick

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post #3 of 7 (permalink) Old 11-16-2011, 09:24 AM Thread Starter
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Chrysler to invest $500M, add 1,100 jobs to Toledo assembly complex



Chrysler CEO Sergio Marchionne announces investment plans for the Toledo North plant at the Toledo Assembly complex, during an event at the Chrysler plant in Toledo.

11/16/2011

It finally has come.

Chrysler Group LLC announced Wednesday a $500 million investment and 1,100 more jobs at its Toledo Assembly complex.

The basics of the announcement have been expected, but the investment amount was considerably higher than the $365 million the automaker previously said was being considered for its facility that makes Jeep Liberty and Dodge Nitro sport utility vehicles.

Sergio Marchionne, Chrysler chief executive, made the announcement. He has implemented world class manufacturing standards at Chrysler plants, and the Liberty/Nitro factory has made great strides toward those standards, reducing costs and making production more efficient. When the factory gets its audit next week, it hopes to have the highest score on those standards among all Chrysler plants, workers. said.

Chrysler said it would add a second shift at the factory as it makes the replacement for the Nitro and potentially other vehicles. The factory is the only one of the company’s plants that currently only works one shift. The added jobs would come in the fall of 2013. Applications will be done through chryslercareers.com.

Included in the announcement is a 260,000 square foot expansion of the plant’s body shop and a 26,000 center aimed at improving vehicle quality.


The company said it would build a replacement of the Jeep Liberty in 2013, but the Nitro is not scheduled to be made after next month. It wasn’t immediately clear what will replace the sport utility vehicle.

Chrysler has about 1,800 workers at the complex now -- some of whom make the Jeep Wrangler in a neighboring factory -- and said it will have about 2,800 by 2013. The new jobs will be filled mostly by new hires, who will be paid about half of the $29 an hour production workers now make.

Chrysler’s request for tax assistance and permits have indicated a potentially large increase in production volume at the Liberty/Nitro factory. At one point, the company talked about adding a stamping factory as well.

Overall, Chrysler said, it would invest $1.7 billion in developing the new generation of Jeep SUVs, of which the $500 million at Toledo Assembly is part.

Gov. John Kasich, U.S. Rep. Marcy Kaptur (D., Toledo), and Toledo Mayor Mike Bell were among the political officials at announcement. Dan Henneman, Toledo Assembly unit chairman of United Auto Workers Local 12 and Local 12 President Bruce Baumhower also were in attendance.


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Fiat-Chrysler leader says Italy's financial crisis could play role in combining companies


November 16, 2011



Chrysler employees listen during a news conference at the Chrysler Toledo Assembly complex, in Toledo, Ohio Wednesday, Nov. 16, 2011. Chrysler said Wednesday, it will add 1,100 jobs at an Ohio assembly complex as part of a $1.7 billion investment to build a new Jeep sport utility vehicle.




TOLEDO, Ohio - Chrysler's chief executive says the economic instability in Italy could affect where it puts its headquarters when the automaker combines with Fiat in the coming years.

Chrysler is now run by Italian automaker Fiat SpA. Sergio Marchionne is CEO of both companies and already working toward bringing the two automakers together.

Marchionne says the economic situation in Italy bears watching. But he adds that the current situation won't force Fiat to move away from Italy.

He also says that Fiat will remain committed to Italy's industrial backbone. It's now Italy's largest employer.

He addressed the company's future Wednesday after announcing plans to add 1,100 jobs at a Chrysler Group LLC assembly plant in Toledo, Ohio, by late 2013.


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Chrysler Invests $1.7 Billion for Jeep SUV, Holds Loan Talks


Nov. 16 (Bloomberg) -- Chrysler Group LLC, the U.S. automaker majority owned by Fiat SpA, said it will invest $1.7 billion to update a Jeep sport-utility vehicle and add production at its factory in Toledo, Ohio.

Chrysler and the U.S. Energy Department also held a conference call today on the company’s application for $3.5 billion in loans under a program to encourage production of fuel-efficient vehicles.

The Toledo investment includes $500 million to expand the assembly plant and add about 1,100 jobs, the Auburn Hills, Michigan-based company said today in a statement distributed at the factory. Sergio Marchionne, chief executive officer of Chrysler and Turin, Italy-based Fiat, said the name of the SUV hasn’t been decided and the loan talks were a high priority.

“As we speak, people are on a conference call with them now,” Marchionne told reporters. “We’ll see where it takes us. I’m working my buns off to get it done.”

Chrysler’s investment in Toledo comes after the company last month raised its 2011 financial forecast to a profit of about $600 million from $200 million to $500 million, excluding costs associated with paying back U.S. and Canadian government loans. The company also reported third-quarter net income of $212 million.

Chrysler will increase employment at the Toledo plant to more than 2,800 after a second shift is added in 2013’s third quarter, according to today’s statement. The factory builds the Jeep Liberty and Dodge Nitro SUVs.

Second Vehicle

The automaker is likely to build a second vehicle in addition to the new Jeep in Toledo, Marchionne said. The plant will build vehicles for the U.S. and for export, he said.

Europe’s debt crisis won’t derail his companies’ investments, Marchionne said.

“We have been incredibly cautious,” he said. “The majority of the growth of the expectations around Fiat are unfortunately outside of the European complex.”

Fiat, PSA Peugeot Citroen and Renault SA led declines in European car sales during October as registrations dropped 1.4 percent to 1.04 million vehicles, the Brussels-based European Automobile Manufacturers Association, or ACEA, said today in a statement. Marchionne said he isn’t optimistic about the region’s car market next year.

“I am not hopeful about 2012 at all, he said. ‘‘This crisis is going to take its toll on volumes.’’

Praise for Monti

Marchionne praised Italian Prime Minister Mario Monti, who he said has ‘‘international credibility.’’ Monti was sworn in today to take over an unelected government charged with imposing austerity to prevent the euro area’s third-biggest economy from succumbing to the debt crisis.

‘‘I sincerely hope the political forces in Italy align behind this project of re-establishing Italy,’’ he said. ‘‘The plan can be put in place relatively quickly. That’s all the international capital markets are looking for. They’re looking for clarity of plan and execution that is believable. Monti has all the qualities to get this done.”

Fiat is targeting a merger with Chrysler within the next three years. Marchionne said today instability in Italy may affect the decision on where the combined company will be based.

“I would be lying to you if I told you it didn’t,” he said. “That’s not to say that the current situation will force us to move away from Italy. We’re committed to the industrial backbone of the country. The country has to make some tough choices going forward, and it has to make them now.”

Sales Climb

The majority of Chrysler’s revenue comes from U.S. sales, which rose 23 percent to 1.12 million light-vehicle deliveries this year through October, according to researcher Autodata Corp. Industrywide sales gained 10 percent during that span, according to Woodcliff Lake, New Jersey-based Autodata.

The United Auto Workers on Oct. 26 ratified a new four-year labor contract with Chrysler. The agreement called for investing $4.5 billion in facilities and adding 2,100 jobs.

The accord also pays Chrysler’s 26,000 U.S. union workers a $3,500 signing bonus, half of which is contingent on meeting financial targets. The contract also raises entry-level worker pay without boosting wages for higher-paid senior workers.


Fiat is moving to raise its ownership stake in Chrysler by an additional 5 percent to 58.5 percent by the end of this year after assembling a 40 mpg vehicle in the U.S.


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Quote:
The Jeep SUV will be built on a broader platform based on the Alfa Romeo Giulietta, a car built by Fiat that will also underpin Chrysler's forthcoming car and sedan lineup.
Quote:
This joint platform is the linchpin of the next stage of Chrysler's turnaround plan, which hinges on fusing Fiat and Chrysler operations to lower costs and expand the companies' reach around the world.

Chrysler's Jeep plant in Toledo, which currently builds the Jeep Liberty and Dodge Nitro, will build the first Jeep SUV off this platform, which will be exported globally, by 2013.

Chief Executive Sergio Marchionne said four different models could be build on the Jeep SUV platform.

"It's a very large number for one vehicle," Marchionne said of the $1.7 billion investment on Wednesday.
Quote:
Marchionne said the company has not yet decided whether it will retain the Liberty name.

Chrysler to spend $1.7 billion on Fiat based Jeep SUV - Economic Times

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Nov 16, 2011

Chrysler is counting on a new Jeep sport utility vehicle and its strong brand name to help withstand uncertainty in the European auto market and expand into new markets in China and Russia, the automaker's chief executive said Wednesday.

The company announced plans to spend $500 million at its Ohio assembly complex that will make the new model and add 1,100 jobs by late 2013. The expansion is part of a $1.7 billion investment to build the new Jeep.

Rick

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