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Contract details factory swaps

by David Zatz on

Factory swaps were announced last week. There are likely three goals:

  • renovating plants without losing production
  • putting low-margin products into low-wage factories
  • moving high-demand product into higher-capacity plants

The UAW contract commitment provides actual dates.

  • Belvidere (Compass/Patriot and Dart) will change its load in 2016.  Patriot is being replaced by Renegade, made in Italy, while Compass is being replaced, possibly outside the US.  585 jobs are to be added, and it seems likely Cherokee will land here; Dart does not have to move out but it’s expected to. (2016 may be the last year for Dart in its current form.)
  • Conner Avenue (Viper) has no product after 2017 when the current Viper ends.
  • Toledo South will stop making Wranglers in 2016 and start a new product in 2018, while Toledo North will stop making Cherokees in 2016 and start Wranglers in 2017.
  • Ram will move to Sterling Heights in 2018, while the 200 will move out in 2016. (It could land in Belvidere with Cherokee.)

The document did not mention Mexican or Canadian plants. New product coming to Dodge includes a range of rear wheel drive cars whose basic dimensions will be shared with Alfa Romeo.  The fate of the current large car platform past 2019 remains unknown.

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