Chrysler invests and extends production in Sterling Heights

On the day that marked the start of the production of the all-new 2011 Chrysler 200 and Dodge Avenger, the Chrysler Group LLC has announced the extension of production, the addition of a second shift and an $850 million investment at its Sterling Heights (Michigan) Assembly Plant.

“Today is a historic day for this facility. Not more than 18 months ago, it was slated to close at the end of this year,” said Sergio Marchionne, Chrysler Group LLC CEO. “Now, this plant will not only remain open beyond 2012 and retain jobs, but with the help of the State of Michigan and the City of Sterling Heights, we will make a significant investment in this facility to make it competitive with the best in the industry.”

Marchione, Michigan Governor Jennifer M. Granholm, Sterling Heights Mayor Richard Notte, Vice President and Director of the UAW Chrysler Department General Holiefield and other local officials, joined employees to recognize the strategic importance of the plant, the workforce and the all-new Chrysler 200 and Dodge Avenger for the future of Chrysler.

The Group will be investing $850 million in the assembly plant at Sterling Heights, which will be used for the construction of an all-new, state-of-the-art, 425,000-square-foot paint shop, as well as the installation of new machinery, tooling and material-handling equipment. Part of that amount will also be invested in the local stamping facilities in Warren and Sterling Heights.

"This is an important day for Chrysler Group and the UAW as the company makes a major investment in an assembly plant here in the U.S., thereby maintaining good manufacturing jobs in Michigan,” said General Holiefield, Vice President UAW/Chrysler Department. “This investment, along with the strong relationship between our two organizations, will contribute to the future success of Chrysler, our employees and the products we so proudly build."

Since the announcement in July 2010 that the Sterling Heights Assembly Plant (SHAP) would remain open beyond 2012, employees have started to adapt the facility for the production of the new 2011 Chrysler 200 and Dodge Avenger, as well as future products. They have been implementing the World Class Manufacturing (WCM), an extensive and thorough process that is expected to bring all Chrysler Group facilities to their original and maximum functionality.

“The employees have adopted the right mindset toward the implementation of WCM and are striving to reduce waste in everything they do,” said Tyree Minner, SHAP Plant Manager. “As a result of their participation in this process, the team at SHAP has saved more than $10 million year-to-date and we are on track to exceed our total year-end goal.”