Chrysler to invest $179 million in Dundee plant

Chrysler will invest $179 million in the Dundee, Michigan plant it formerly shared with Mitsubishi and Hyundai in the Global Engine Manufacturing Alliance which was dissolved earlier this year. The funding will be used to covert production to building Fiat’s 1.4-liter, four-cylinder engines. The plant is expected to produce about 250,000 engines each year and will add an estimated 155 new jobs to the plant.

THe change will also help Fiat SpA to achieve one of the goals set by the government for increasing its ownership of Chrysler. By building an engine in the U.S., Fiat can increase its stake to 25 percent. It’s anticipated that Fiat will be able to achieve all the benchmarks to have a 35 percent controlling ownership of Chrysler by the end of 2011.

Sale of Newark Chrysler plant approved

Detroit News noted that the Old Carco has been given permission to sell its Newark, Delaware assembly plant to the University of Delaware. The plant, which most recently made the Durango and Aspen, was one of the last of many Northeastern auto plants to close down. Chrysler Group purchased $25,000 of equipment from the plant before the sale, and had been paying taxes on the plant (which was assessed $5 million per year in property tax).

Old Carco is the “unwanted” portion of the old Chrysler LLC. The $24 million sale price for the plant will be used to administer the shutdown of Old Carco, and be distributed to creditors.

The University of Delaware will build a research and technology campus with the land, which is close to its sports fields, after Chrysler removes remaining equipment. It is expected to take two years to clean the site and remove the buildings.

University of Delaware buys Chrysler Newark Plant

The University of Delaware has inked a deal to buy Chrysler’s former Newark Assembly Plant. The school got a good deal, paying $24.25 million, just over half of the property’s estimated value. In order to facilitate the deal, the university agreed to take responsibility for environmental remediation at the site.

UD plans to turn the 272-acre site into facilities for education and research and school officials say the deal could bring thousands of new jobs to the region and will increase the capacity of the graduate school.

The Newark Assembly Plant opened as a tank plant in 1951 and was converted to automobile production in 1957. Its most recent products were the Chrysler Aspen and Dodge Durango. The Newark facility was one of the properties shed during Chrysler’s bankruptcy.

Thanks to “gr8 dave” for the tip!

Marchionne: Sterling Heights plant will close in 2010

Dashing hopes that refreshes of the Chrysler Sebring and Dodge Avenger indicated company executives were re-thinking the closure of the Sterling Heights Assembly Plant, Chrysler CEO Sergio Marchionne says the plant will be shuttered at the end of 2010 as originally planned.

Marchionne said he has ruled out major refreshes to the two sedans, which never met their sales targets, meaning there is no new product for the facility which employees about 1,300 workers.

Sterling Heights plant still slated for closure

Contrary to rumors appearing in various media sources, Chrysler Group spokesman Max Gates says there have been no changes to the company’s plans to shutter the Sterling Heights Assembly Plant by the end of 2010. Employees at the factory, which builds the slow-selling Chrysler Sebring and Dodge Avenger, had been encouraged by news the two cars would receive facelifts that would keep them in production at least until 2011.

Gates did not have any comment about what plans the company has to transfer production of the refreshed cars to another plant. Chrysler is due to unveil a detailed five-year strategy in November.

Twinsburg workers to get new jobs in Detroit

About 400 hourly employees from the Chrysler stamping plant in Twinsburg, Ohio will be given an opportunity to come to the Motor City and fill positions at the Warren and Sterling stamping plants. Chrysler says 150 of the workers could go to Warren with the balance being assigned to Sterling.

The Twinsburg plant was one of the facilities left behind when the new Chrysler Group LLC was formed from the assets of the former Chrysler LLC. It is now owned by Old Carco LLC, the entity formed to liquidate the old Chrysler’s remaining assets., and is scheduled to be closed by the end of 2009.

Sebring, Avenger to get reprieve

While workers at the Sterling Heights Assembly Plant rally to save their jobs, Automotive News is reporting the Chrysler Sebring and Dodge Avenger have been given another chance. The Sebring will get a significant facelift for the 2011 model year while a revamped Avenger will appear somewhat sooner as less work is required.

The Sterling Heights plant had been slated for closure at the end of 2010 with the cancellation of the Sebring and Avenger, but AN says the Fiat models intended to replace them won’t be ready for at least two more years, meaning they won’t be available until the 2012 model year at the earliest.