Apr 30, 2012

Chrysler boosts Jeep output, speeds 1,100 new jobs

By James R. Healey, USA TODAY

Sergio Marchionne made the Jeep announcement at a speech today marking Chrysler's plan to move a handful of workers into a downtown Detroit building after it's remodeled. That will be the first time the Detroit automaker actually will have an office in Detroit, instead of the suburbs. The Jefferson North plant that builds the Grand Cherokee is, however, in the city.

The building where some Chrysler workers will move has been called the Dime Building. It will be renamed Chrysler House and Chrysler will house about 70 people in offices there later this year.

Marchionne also spanked the Canadian Auto Workers union for striking at a supplier plant and thus shutting down minivan production in Ontario today.

Said the CEO:

"If that's the basis on which we're going to move forward I think we're going to have a very difficult round of (union) negotiations. This is not the way to build a car company."

Such work stoppages -- over what he said was a minuscule financial difference between labor and management -- signal that "people have an incredibly short memory of what happened back in 2009. I have zero empathy for that process today."

Chrysler went through bankruptcy reorganization in 2009, pressed by slow-selling products and high costs, including, the company said, union wages and benefits.

"I would ask everybody to come back to their senses and clean this stuff up," Marchionne said.

Workers at the plant in question, Dakkota Integrated Systems, voted again later in the day and decided to return to work, allowing minivan production to resume in the afternoon.

Dakkota makes instrument panels for the family vans built by Chrysler in Ontario and sold under the names Dodge Caravan, Chrysler Town & Country and Volkswagen Routan.

Chrysler boosts Jeep output, speeds 1,100 new jobs