Chrysler Starts to Build Its New Plant

The Chrysler Group has started construction of itsemploys more than 1,600 workers will be replaced with
new $700 million axle plant in the north of Detroit, as itsa new one. And the current engine plant in Trenton,
officials spearheaded the ground breaking ceremonythat also employs as estimated 1,600 people will be
that was held last Monday.replaced by the new one in the Detroit edge of
The company also said that it will inform the press onTrenton.
the more plant investments in the coming weeks. This,The company stated that the new St. Clair Township
according to Chrysler officials, is part of the $3 billionplant will get about 900 workers, while the new engine
that will be used this year to spend for factories thatplant would get about 485 workers. The company has
make engines, axles, transmissions and other powera net job loss of about 1,465. This is because over 350
train parts.workers at the current Trenton and Detroit axle plants
The announcement of the building of a new plant in St.are expected to take buyouts or early retirement
Clair Township, which is about 50 miles northeast ofoffers under the recovery and transformation plan.
Detroit, and a new engine plant in the Detroit edge ofFront- and rear-drive axles for many Chrysler truck
Trenton was done last April.products, trailing axles for Dodge and Chrysler
DaimlerChrysler AG, the German company frommini-vans, and power train parts for the Chrysler 300,
where Chrysler's came, made the announcements.Dodge Magnum and Dodge Charger cars are being
The company said last week that for a $7.4 billion deal,manufactured in the Detroit axle plant.
it would sell Chrysler to private-equity firm CerberusThe new -generation Chrysler V-6 engine will be
and the deal is expected to close sometime from Julymanufactured in the Treton plant.
to September.About Chrysler Group
David Elshoff, the Chrysler spokesman, said that lastSoon to be Chrysler Corporation LLC, the Chrysler
Monday's ground breaking ceremonies proved thatGroup is an independent an American automobile
Cerberus is committed to the restructuring plan ofmanufacturer that has been manufacturing vehicles
Chrysler. The plan involves cutting 13,000 jobs butsince 1925.
more investments in its facilities.DaimlerChrysler AG, the parent company of Chrysler,
He further said that their company's recovery andannounced on May 14, 2007 the sale of 80.1 percent
transformation plan reflects their map of movingof Chrysler to Cerberus Capital Management, L.P. an
forward. In the coming week, the public will be informedAmerican equity firm. When the transaction is
of the company's other plant investments.completed, Chrysler Corporation LLC will be the new
Last month, Chrysler, which is also maker of qualityname of Chrysler.
Dodge Daytona parts, told the press that it will beIn 1998, after a deal known as "Merger of Equals",
spending $1.78 billion on transmission and engineChrysler and its subsidiaries were part of the
facilities. This would include the St. Clair Township andDaimlerChrysler AG that is based in Germany. The
Trenton plants, a $50 million investment in its Warrenoperations in the US are now referred to as the
stamping and assembly complex, and a new $300"Chrysler Group".
million paint shop at its assembly plant in Sterling"Mopar", the name for its parts operation, is another
Heights.popular term for the entire line up of Chrysler cars.
The Detroit axle plant that was built in 1917 and now