Chrysler Adds 1,100 Jobs to Toledo Plant

Chrysler is marching forward with plans to add more than 1,100 jobs at a Toledo assembly plant by 2013 despite a rocky U.S. economy that has whipsawed investors this past week.
The Auburn Hills automaker is planning to invest about $365 million at its Jeep Liberty and Dodge Nitro plant, city documents show. Experts say the investment is for the next-generation Liberty based on a Fiat platform. However, the plans depend on the approval of tax incentives by Toledo and two school districts.
"This project is ... going to put many of the parents of our students to work," said Bob Vasquez, board president for Toledo Public Schools, who will vote on the tax proposal Tuesday.
The new jobs would bring the total of future manufacturing jobs announced this year by General Motors, Ford and Chrysler to more than 11,100.
In Michigan, hourly employment by all automakers and suppliers has increased 25% to 129,300 since January 2009, said Kristin Dziczek, director of the labor and industry group for the Center for Automotive Research.
Still, some of the Detroit Three's hiring plans could be in jeopardy if the U.S. economy goes into a double-dip recession. "It always depends on the market," Dziczek said.
Michael Robinet, director of global production forecasts for IHS Automotive, said the profitable automakers are counting on an improving economy but noted they are better suited to weather economic difficulties. "We are in a different place now," he said.

Chrysler shows it's recovering

Chrysler's plan to invest $365 million at a plant in Toledo is another sign of the automaker's continued recovery.
Since Chrysler emerged from bankruptcy in June 2009, the company has added 6,000 salaried and hourly employees and invested nearly $3.2 billion in its U.S. plants. For the first half of the year, Chrysler has posted a loss of $254 million, although it would have been profitable without a onetime charge related to paying back its government loans.
On Thursday, Toledo city documents revealed that the Auburn Hills automaker plans to add about 1,100 jobs by 2013 at its Toledo Assembly Complex.
Chrysler plans to retain about 900 jobs at the plant and add the new jobs after it completes the expansion in 2013, according to tax-incentive proposals drafted by the city.
In return for the potential investment, the City of Toledo is offering Chrysler $15.4 million in tax abatements, grants and other incentives over 15 years.
While Chrysler declined to confirm the plans, it issued a statement that said Fiat and Chrysler CEO Sergio Marchionne talked about a possible plant investment in January.
"As part of the process, Chrysler Group is working with state and local governments to secure incentives that would support the business case for such an investment," Chrysler said in its statement.
Bob Vasquez, president of the board for Toledo Public Schools, expects his school district to vote in favor of property tax incentives for Chrysler on Tuesday. He said city officials also are in favor of the project.
Chrysler's product plan calls for the existing Jeep Liberty to be replaced with a new product based on a Fiat platform in 2013. It's expected to be more fuel-efficient and could help Chrysler boost its exports. "With the next-generation Jeep Liberty, they really have an opportunity to sell that worldwide," said Tracy Handler, senior analyst at IHS Automotive.
In July, Marchionne said Alfa Romeo and Jeep are the best positioned in the automaker's portfolio to become international brands.
Chrysler also has said the Jeep lineup will be more fuel-efficient with only the iconic Wrangler and Jeep Grand Cherokee maintaining a trail-rated designation for serious off-roaders.
The automaker must develop more fuel-efficient Jeep models to meet stricter fuel-efficiency standards as well as consumer preferences, said Michael Robinet, director of global production forecasts for IHS Automotive. "Jeep products are likely to focus on new, lighter, more-flexible structures," Robinet said.