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Chrysler plant clarification

by David Zatz on

Chrysler has sent out a new communication regarding the status of its various factories, headed by a sort of apology to those who discovered the status of their plants via court papers. The letter pointed out that the original standalone plan had not been made public because they did not know whether it would be approved, and because the UAW had not been consulted. This plan was rejected and a new plan based on a Fiat alliance was made, which considered changes in customer demand over the coming decade. Among other issues is presumably the assumption that when the economy recovers, fuel prices will also resume their climb. 

While most of this information was previously released, there was some news in the clarification, including an end date for the Conner Avenue plant, which went from making spark plugs to making Vipers. The closure of the plant does not necessarily mean the end of the Viper, since Vipers were originally made in a different facility.

Sterling Heights will be closed after December 2010. This plant makes the Avenger and Sebring, which have proven to be unpopular; it has been operating at well under its capacity.

The Kenosha Engine plant will be idled in December 2010 due to “unprecedented reduction in volume and demand for products.” 

Detroit Axle was already slated for closure as a new Marysville, Michigan facility came online; it will be idled in December 2010.

Twinsburg Stamping:work will be moved to Warren and Sterling stamping plants in March 2010.

Conner Avenue Assembly Plant: The site is scheduled to idle December 2009. 

St. Louis North Assembly Plant: RamBox production will be moved to Warren Truck Assembly Plant in the third quarter of 2009, and the plant closed. 

Newark Assembly Plant and St. Louis South Assembly Plant are already closed. 

The letter claimed that manufacturing was temporarily idled to reduce dealer inventory, not as a result of the bankruptcy following, and that “virtually all employees associated with these facilities will be offered employment with the new company.” Some may be transferred to Jefferson North when a second shift is added to build the 2011 Grand Cherokee.

David Zatz founded Allpar in 1998 (based on a site he had begun in 1993-94), after years of writing reviews for retail trades. He has been quoted by the New York Times, the Daily Telegraph, the Detroit News, and USA Today. Before making Allpar a full-time career, he was a consultant in organizational psychology. You can reach him by using our contact form (much preferred) or by calling (313) 766-2304

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