Chrysler to invest $1.8 billion in new production facilities, vehicle programs

[Eric]

Chrysler announced today that it will invest approximately $1.8 billion in new vehicle programs, including a significant expansion and upgrade at its Jefferson North (Detroit) Assembly Plant to ready it for future production, starting in 2010. The announcement was made by Tom LaSorda, Chrysler LLC Vice Chairman and President, during a speech at the 2008 Management Briefing Seminars in Traverse City, Mich.
“This investment in our future products and at Jefferson North will enable the Company to produce a future generation of vehicles more efficiently, with world-class quality and an improved environmental footprint,“ said Tom LaSorda. “Furthermore, this commitment reinforces the long-standing partnership between Chrysler LLC, the City of Detroit and the State of Michigan."

"A strong Chrysler is important for Michigan and Michigan workers, and we are pleased to cooperate with them on this project," said Governor Jennifer Granholm. "This expansion will continue a valuable, long-term partnership that has helped keep Michigan the automotive capital of North America."

The total program investment will go towards product development functions, as well as new, state-of-the-art manufacturing systems in the plant. This investment provides for the design, development, components and supplier support associated with the new vehicle programs.

"We believe the Jefferson North makeover will give the facility and our Company the upper hand on how responsive we can be to shifts in consumers' needs and changing market demands," said Frank Ewasyshyn, Chrysler LLC Executive Vice President of Manufacturing. "We also believe this will be achieved while continuously improving the quality of our vehicles that will be produced in Detroit."

Jefferson North will undergo a 285,000-square-foot building expansion to replace the existing body shop, which will give the facility an all-new level of manufacturing flexibility for multiple product capability. In addition, changes throughout paint and assembly operations will accommodate vehicles of various sizes and dimensions. Material handling and other plant functions also will be improved.

Plant employees will benefit from new levels of involvement and training to help complete the plant transformation. Much of the critical work required for facility and equipment preparation and installation will be accomplished by employees from the plant, a result of collaborative work between Chrysler and the UAW.

“This is an important day for the future of the UAW and Chrysler LLC, and we are pleased to partner with Chrysler to help maintain jobs in Michigan,” said General Holiefield, UAW Vice President and Director for the Chrysler Department. “Although we are in the midst of challenging times, the strong relationship between Chrysler and the Union will contribute toward our long-term success."

Multiple “green” initiatives will be employed at Jefferson North. Each of these additions will result in energy savings, as well as a brighter, cleaner and more ergonomically sound workplace for employees. Plus, these advancements will improve the environmental footprint of the facility by reducing carbon emissions, solid waste and raw material consumption while also helping to green the outside grounds of the plant. These include:

Energy-efficient fluorescent lighting fixtures and a state-of-the-art energy management system
Air filtration systems to improve employee comfort and workplace cleanliness
Decanting technology, which will utilize paint sludge as an energy source, reducing emissions and solid waste
Electric-servo weld guns in the new body shop to improve welding quality for the vehicle bodies, while also producing quieter operations
Replacing unused asphalt parking areas with grass to reduce heat generation and improve appearance
Utilizing reusable paint clips that hold doors in place during the paint process and reusing parts racks, resulting in a reduced raw material consumption
Trailer cubing and rack density improvements to reduce fuel consumption and transportation costs

The energy savings resulting from the sludge operations, filtration systems, lighting and servo welding alone are anticipated in total to save several dollars per vehicle built, while helping to have a cleaner, brighter workplace.

[chiph]

BusinessWeek is saying that Cerberus is pushing Chrysler to become a contract manufacturer for other automakers, and thus would have few/none of it's own cars.

Chip H.

[Eric]

BusinessWeek is saying that Cerberus is pushing Chrysler to become a contract manufacturer for other automakers, and thus would have few/none of it's own cars.

Chip H.

That could be very likely; it makes sense to me. I don't see how they can make it as independent brand. The market is too glutted; the competition too intense. What is the reason for buying a Chrysler? Other than a handful of models (Notably, the Jeep Wrangler and Cherokee) whatever they sell is either irrelevant, unpopular or made by someone else just as well (or better).