Announced exactly a year ago as a 1 billion euro plan to
secure the future of the Mirafiori factory in Turin, the
proposal to build a new-generation D-SUV for the Jeep
brand from 2013 was this week instead confirmed for the
Chrysler Group's Toledo factory in Ohio.
That plan, which used
Fiat's D-Evo platform and also included building an Alfa
Romeo D-SUV spin-off, fell by the wayside this year
after a union vote at Mirafiori had positively affirmed
the proposals. The concept of an Alfa D-SUV was also
subsequently cancelled. Instead Chrysler Group announced
this week that it will invest $1.7 billion to support
the development and production of the D-SUV Jeep SUV in
2013, including $500 million at the Toledo Assembly
Complex. As a result, it 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 announce 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.”
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