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Chrysler in-sourcing rumors and updates

by David Zatz on

Trenton Engine plant

Our initial story on Chrysler bringing back production of key parts, including engine components, from foreign suppliers has been updated.

Chrysler has taken over the paint shop at the Toledo Supplier Park from Magna, which has run the Chrysler-owned shop for around five years; and there are reportedly numerous efforts to bring other work back in-house at Toledo, a plant which, when opened, was billed as the wave of Chrysler’s future, with investment (and responsibility) split among numerous suppliers. The reversion of that plant to a more traditional setup, even if done slowly and incrementally, is an important sign that the Cerberus/Daimler ethic of hollowing-out is dying quickly.

At the Trenton South engine plant, which makes Pentastar engines, we expect to hear an announcement any day now regarding new investments which will bring back the production of key components from a Mexican supplier, possibly reviving Trenton North.

There are even rumors that Chrysler may be thinking about moving projects that would have gone to Mexico back in the United States, not because of any nationalistic issues, but because of other costs and benefits.

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