The Sterling Heights plant builds two sister models, Chrysler's Sebring (above in 'Convertible' format) and Dodge's Avenger, with this pair of cars having assumed strategic importance in the U.S. carmaker's business plan in the mid-size segment with facelifted versions due next year.

Chrysler Group has indicated that it will extend the life of the Sterling Heights Assembly Plant into 2011, after originally slating it for closure next year. The factory builds two sister models, Chrysler's Sebring and Dodge's Avenger, with this pair of sedans having assumed strategic importance in the U.S. carmaker's business plan in the mid-size segment with facelifted versions of both due next year.

The news of the reprieve came from Fiat Group and Chrysler Group CEO Sergio Marchionne in response to a question from Rep. Candice Miller during a meeting he had with Michigan lawmakers yesterday. Marchionne also indicated that the next-generation Sebring and Avenger, that will be built on Fiat platforms and also use its efficient engines, will most likely be built Stateside, but that as well as the option of Sterling Heights other sites were being considered in Michigan and beyond. "Marchionne indicated that the Sebring would be a big part of Chrysler’s return to profitability and will require the operation of SHAP [Sterling Heights] into 2011," Miller said in a statement.

With Chrysler's sales tanking 25 percent in the U.S. during November compared to a flat month for Detroit rival Ford and a 2 percent decrease for GM, which has also been through a court administered bankruptcy restructuring process this year, Marchionne also said yesterday that he would be prepared to let market share slide in the short term if it helps his long-term plans.

Chrysler Group issued a statement following the meeting which read: “Chrysler Group continues to engage in dialogue with a number of concerned parties regarding the future of the Sterling Heights Assembly Plant. The Company has a series of issues that must be resolved related to a potential production extension at Sterling Heights Assembly prior to any official announcement. Those discussions with the city, state and asset managers continue with full support and commitment from the International UAW Chrysler Department lead by General Holiefield. While these discussions go on, Chrysler Group continues to study alternative locations for the long-term product action outlined in the Company’s strategic plan," the statement continued. "These alternatives include several options such as identifying Greenfield sites outside the state of Michigan. The Company will continue to work with the appropriate parties to resolve the concerns with a focus on rebuilding the fabric of a new Chrysler into a vibrant and competitive entity.”

Chrysler also released a second statement yesterday, this time regarding the on-going issues with former dealers that were given the chop this summer. "We agree with Congress that arbitration is the best way to resolve the issues involving discontinued dealers. We are committed to work with Congress and the dealers to achieve a process that equitably balances the interests of the discontinued dealers, our current dealers, and the taxpayers relying on Chrysler to repay its loans."