Jeremiah 29:11

Chrysler plans $597 mln Ontario plant investment

17 Mar 2007

DaimlerChrysler AG's Chrysler unit assured the head of the Canadian Auto Workers union yesterday that it intends to expand an Ontario plant where workers agreed to wage cuts in exchange for $597 million (C$700 million) in new investment.
Chrysler's plans to add production of a new vehicle at the Brampton, Ontario, plant will be formalized in a letter to the union, CAW President Buzz Hargrove said today. Chrysler spokesman David Elshoff confirmed the letter will outline the automaker's plan to move forward with the investment. The investment would bolster efforts to preserve 4,200 jobs at the assembly plant outside Toronto. Chrysler, the third-largest US-based automaker, lost $1.5 billion in 2006 and plans to cut 13,000 North American jobs. „That is what we were looking for,” Hargrove said in an interview. Production of the new vehicle could begin in 2009, he said.


Chrysler earlier said Brampton's future wouldn't be decided until mid-April. Production of the new vehicle still needs board approval, Elshoff said. He declined to comment on a union Web site report that it will be a new version of the Chrysler Imperial. Chrysler will pursue financial incentives from the Canadian government for the expansion, Elshoff said. Auburn Hills, Michigan-based Chrysler had threatened to put the money into another factory if Brampton's autoworkers didn't agree to the cuts before a March 14 board meeting.


The union members, who make C$30 to C$35 an hour, reversed an earlier decision and voted March 11 to give up a premium amounting to C$125 a week, spokesman Bob Moore said last week. The union also agreed to let outside contractors replace janitors and perform certain repairs. The wage cut and work rule concessions will save DaimlerChrysler C$25 million to C$30 million a year, Moore said. The Brampton plant makes Chrysler 300 and Dodge Charger sedans, and Dodge Magnum wagons. It is scheduled to begin producing the Dodge Challenger next year. With the additional production line, the plant will be the only Chrysler factory in the world to produce five models. US shares of DaimlerChrysler rose 64 cents to $71.94 at 4 p.m. in New York Stock Exchange composite trading. They rose 23% in the year before today. (Bloomberg)

McDonald

Wow thats a lot of money.. The Imperial should sell well if it is to be produced. They should definately profit a lot on the Challenger, or at least you would think. They will be getting a little chunk from me.

Blu Angel

Glad to see the CAW (Buzz Hargrove) and the union membership come to its senses.[sm=smiley20.gif]

Proof that giving a little back to the head company (DCX) guaranteed full employment for the Brampton plant.
One year from now, the Challenger begins production,
then it will be the Chyrsler Imperial,
and come we guess maybe a future Barracuda off the same LY platform?

Very possible if DCX decides to pull the plug on the Dodge Magnum station wagon, if sales continue to sag. What a better scenario that to replace the wagon with another 2 door fastback.....a la BARRACUDA![sm=goodidea.gif]

Justinec101

I was actually under the impression that the Magnums were doing very well. But no problem for me if they stop making them, I don't like them and that just gives them more room/time to make more Challengers!

Blu Angel

Justinec101,

The Brampton plant produced 297,943 vehicles off the LX platform during 2006 calendar year.

Here is the breakdown of the LX vehicles.


2006 2005
Magnum 40,095 52,487 -23 %
Dodge Charger 114,201 44,804 +156 %
Chrysler 300 143,647 144,068 0 %

Total 297,943 241,359 + 23%



As the chart clearly show, Magnum sales are on the downswing. Charger sales are increasing. Chrysler 300 were stable.

BTW, here is the link to the full production of all Chrysler vehicles.

http://www.theautochannel.com/news/2...03/032860.html