Chrysler to Make $1.7B Investment For Jeep Production, Expansion at Toledo Plant

Bringing its total U.S. investments to more than $4.5 billion since June 2009, Chrysler announced earlier this week that it plans to invest $1.7 billion to support the development and production of its next-generation Jeep, set to come out in 2013.
This investment includes pumping $500 million into its Toledo Assembly Complex in Ohio, where chief executive officer and Chrysler Group chairman Sergio Marchionne said the new Jeep D-segment SUV will be built for export to markets all over the world.
This sum will in part be used to add a second shit of production, the equivalent of about 1,100 jobs. This would bring total employment at the complex to over 2,800.
The $500 million investment will also go toward building a 260,000-square-foot expansion of the existing body shop and upgrades to all other areas of the assembly plant — which currently builds the Jeep Liberty and Dodge Nitro.
Moreover, Chrysler will add a 26,000-square-foot Metrology Center, “which will help improve vehicle quality by verifying key measurements to ensure accurate fit and finish,” company officials contend.
The remainder of the $1.7 billion will be invested in other Chrysler Group facilities in the U.S., supplier tooling and other related development costs, the company explained.
As Marchionne — along with Ohio Governor John Kasich, U.S. Representative Marcy Kaptur, Toledo Mayor Mike Bell, UAW regional director Ken Lortz and other local officials — joined employees to celebrate the news, the Chrysler CEO had this to say:
“Earlier this year, I promised that I would have good news to share about our Toledo operations, so I am pleased to be able to make this announcement, which further demonstrates our commitment to the special relationship that Chrysler and the City of Toledo have shared.
“Over many decades, Chrysler has become a part of this community’s fabric. With this investment and the addition of more than a thousand jobs, we continue to play our part in contributing to the city’s industrial and social development. Most importantly, this investment recognizes the support of the UAW and the role that our skilled and dedicated workforce has played in producing some of the finest, most recognized vehicles on the road today,” he continued.
Thanking Ohio’s government officials that worked with the automaker to organize the investment, Marchionne said, “I want to thank Governor Kasich and Mayor Bell for working with us to make the business case for this investment. I would also like to thank Congresswoman Kaptur and all of the federal, state and local officials for their ongoing support.
Construction at the plant will begin in the fourth quarter of this year and continue through 2012.
General Holiefield, vice president and director of the UAW Chrysler Department, commented on the news, saying, “This announcement continues the momentum that the Chrysler Group has experienced over the past 28 months.
"Not only is the company continuing to invest in its facilities, but it is adding jobs and securing the future of our current workforce by demonstrating its commitment to the workers who have contributed to the company’s remarkable turnaround,” he concluded.
And as for the new jobs expected to come out of the investment in the Toledo plant, the second shift of production is scheduled to begin in the third quarter of 2013. When positions are available, they will be posted at www.chryslercareers.com, where applications can be submitted online, the company explained.
Chrysler to Team Up with Toys for Tots
In other recent company news, as the holidays approach, Chrysler‘s Mid-Atlantic Business Center and 254 of its dealers are teaming up with the Marine Toys for Tots Foundation in an effort to “make this holiday season brighter for many families.”
So how will the partnership work?
As part of the program, the MABC is offering a $750 incentive to customers purchasing a new 2011 or 2012 Dodge Journey, Dodge Grand Caravan or Chrysler Town & Country minivan.
The company hopes that the incentive will attract buyers, since $100 will be donated to Toys for Tots for each of those vehicles sold.
Moreover, dealers in the Mid-Atlantic region, which covers Delaware, Maryland, Pennsylvania, Southern New Jersey, Virginia and West Virginia, are being encouraged by the OEM to match the donation and serve as a drop-off point for toys.
“Our dealers are deeply rooted in their communities, and this is a good time and a good way for our company and our dealers to give back to the communities that support us,” said Steve Zanlunghi, director of the MABC.
“Toys for Tots is a perfect charity partner for us and our dealer distribution network. It’s a great way for us to give back to those less fortunate, especially during this time of year,” he added.
The campaign has now begun, and will be in full swing at local Chrysler and Dodge dealerships throughout the Mid-Atlantic region and continues to the end of the year.
Retired Marine Maj. Bill Grein, vice president of the Marine Toys for Tots Foundation, expressed his enthusiasm for the partnership: “We are very pleased to welcome the Chrysler Mid-Atlantic Business Center as a national corporate sponsor of the 2011 Marine Toys for Tots Campaign.
“Their community service goals certainly align with those that the Marine Corps has promoted for nearly 65 years through our Toys for Tots program. With their generous support, we will be able to fulfill the Christmas holiday dreams of thousands of less- fortunate children in the Mid-Atlantic region,” he concluded.