Automotive Intelligence - the web for automotive professionals and car enthusiasts
May 13, 2009
The substantial majority of Chrysler’s assets, operations, plants and people will be transferred to the new company, while assets and liabilities that are not consistent with Chrysler’s business plan will remain with the old company for disposition. Under the supervision of the court, and with the support of the U.S. Treasury and the President’s Auto Task Force, the new company will quickly emerge from bankruptcy as a restructured and financially healthy organization.
The plants currently scheduled for closing are as follows:
Sterling Heights Assembly Plant: A severe decline in the market has resulted in reduction of volumes and thus made operation of this plant not possible. The plant is expected to continue operation through December 2010.
Kenosha Engine: Unprecedented reduction in volume and demand for products has resulted in the decision to idle the plant in December 2010.
Detroit Axle: All required work will be moved to a new facility that is being developed in nearby Marysville, Mich. The plant will be idled in December 2010.
Twinsburg Stamping: Due to deteriorating volumes and in order to optimize capacity, existing volume will be transferred to Warren Stamping and Sterling Stamping plants effective March 2010.
Conner Avenue Assembly Plant: The facility and vehicle platform has been for sale since 2008. The site is scheduled to idle December 2009.
St. Louis North Assembly Plant: Due to volume reduction in the truck segment, capacity will be optimized by moving RamBox production to Warren Truck Assembly Plant effective third quarter of 2009.
Newark Assembly Plant (closed December 2008)
St. Louis South Assembly Plant (closed October 2008)
While most manufacturing operations have been temporarily idled in order to reduce dealer inventory and as part of the restructuring process, this idling was not the result of the bankruptcy filing, and we expect that most workers will be back on the job following the bankruptcy proceedings and the formation of the new company.
It is expected that virtually all employees associated with these facilities will be offered employment with the new company. The Jefferson North Assembly Plant is scheduled to add a second shift which represents 1,200 jobs coinciding with the introduction of the all-new Jeep Grand Cherokee. While the company continues to address difficult market conditions, this alliance will ultimately provide Chrysler customers and dealers with a broader and more competitive lineup of fuel-efficient vehicles and technology.
(May 6, 2009)