Chrysler Group Invests $240 Million to Increase Engine Production and Adds 1,250 Jobs at Detroit-area Facilities

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DETROIT--Nov. 15, 2012:

  • Chrysler Group Chairman and CEO makes announcement joined by Detroit Mayor
  • Mack I to receive $198 million to add production of fuel-efficient Pentastar engine; will create up to 250 new jobs
  • Investing additional $40 million in Trenton North to install flexible assembly line to boost production of fuel-efficient engines
  • Adding 1,000 new jobs on third crew at Warren Truck in March 2013
  • Announcement brings total U.S. investment to nearly $4.75 billion since June 2009
  • Company has added nearly 6,000 hourly jobs since June 2009
  • Chrysler Group employees deliver Thanksgiving trimmings to food banks in plant cities across the country, including Oakland, Macomb and Wayne Counties

Chrysler Group LLC announced today that it will invest nearly $240 million to increase engine capacity and add about 1,250 new jobs at several Michigan facilities, reaffirming the Company's commitment to growing its operations in southeast Michigan.

Chrysler Group Chairman and CEO Sergio Marchionne confirmed that the Company would make investments and add jobs at the following local plants:

  • Mack I Engine Plant: $198 million to produce the award-winning Pentastar (V-6) engine
  • Mack I Engine Plant: adding up to 250 new jobs at Mack I, subject to market conditions
  • Trenton North Engine Plant: investing an additional $40 million to add a flexible production line that can run both the Pentastar engine and the Tigershark (I-4) engine
  • Warren Truck Assembly Plant: adding 1,000 new jobs on a third crew in March 2013 to produce the 2013 Ram 1500

Marchionne, along with Detroit Mayor Dave Bing, other local officials and UAW Vice President General Holiefield, joined employees to celebrate the news at an event at the Mack I Engine Plant.

"Today is another important milestone in living up to the commitment we made more than three and a half years ago to our employees, this city, this region and our country to transform this company," said Marchionne. "All of these investments are the direct result of a lot of people who have battled courageously to bring Chrysler back to a state of growth. It is our contribution toward helping southeastern Michigan get back on its feet."

"I want to thank Mayor Bing and all the other state and local officials who worked with us to make these investments possible. Together, and with the support of our UAW partners, we are committed to building something that will have a long lasting, direct impact on this community," said Marchionne.

With this announcement, Chrysler Group's investments in its U.S. facilities increase to nearly $4.75 billion since June 2009. In the same time frame, the Company has added nearly 6,000 hourly jobs.

"These new investments and new jobs are a testament to the determination we all had -- management, labor and our workforce -- to making the best of the second chance we were given in 2009," said General Holiefield, Vice President and Director of the UAW Chrysler Department. "In partnership with the UAW, Chrysler Group is helping grow good paying manufacturing jobs and securing the future manufacturing base in this country."

At the same time that the Company was making investment and jobs announcements today, Chrysler Group employees in plant cities across the country were delivering food to local food banks to help drive out hunger this holiday season. Additionally, the Company's philanthropic arm, The Chrysler Foundation, donated more than 1,500 frozen turkeys to the food banks. This is the second year that the Company has held an enterprise-wide food drive. Last year, Chrysler Group's donations helped feed more than 12,000 people across Michigan, Illinois, Indiana, Ohio and Washington, D.C.

These announcements reaffirm Chrysler Group's commitment to Southeast Michigan. Previously, Chrysler Group announced that it was reopening the Conner Avenue Assembly Plant for production of the SRT Viper; adding 1,100 jobs on a third crew at the Jefferson North Assembly Plant (Detroit), which began Oct. 29; and moving employees to a downtown Detroit office.

About the Investments
Mack I, which currently builds the 4.7-liter V-8 for the Ram 1500, will begin producing Pentastar engines in early 2014. When the 4.7-liter engine phases out in the first quarter of 2013, Mack I will begin producing crankshafts that will be shipped to the Trenton Engine Plant to supplement its machining capacity, followed by production of cylinder heads and cylinder blocks. Once the plant reaches full capacity, the plant will add up to 250 new jobs, subject to market conditions.

The $40 million investment at Trenton North for installation of a flexible production line will give the Company the ability to adjust capacity of either the Pentastar or the Tigershark engine, currently built at the Dundee Engine Plant, to meet market demand. This investment is in addition to the $114 million investment and creation of 268 new jobs previously announced in June to repurpose about one-fifth, or nearly 400,000 square-feet, of Trenton North for production of core components for the Pentastar engine produced at its sister plant, Trenton South.

Warren Truck began production of the 2013 Ram 1500 in September. It will become the third facility in the last year to add a third crew, joining the Belvidere, Ill., and Jefferson North (Detroit) Assembly Plants. The Windsor Assembly Plant has been running three shifts since 1993.

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