Chrysler Group Announces Third Shift at Warren Truck Assembly Plant

WARREN, Mich., Oct. 4, 2002-- Chrysler Group and the United Auto Workers (UAW) today announced a third shift of production at the company's Warren Truck Assembly Plant, which will lead to an additional 1,000 jobs at the facility. The plant produces the new Dodge Ram 1500 series Quad Cab models, and Dodge Dakota Regular, Club and Quad Cab pickup trucks.

The company will invest approximately $35 million for the additional production, which will increase the plant's capacity by 21 percent, or 60,000 units annually, to a total of approximately 338,000 units a year.

"The bottom line is that consumers are demanding more of our new Ram and Dakota models," said Wolfgang Bernhard, Chrysler Group Chief Operating Officer. "We looked at a number of ways to increase production to meet that demand, and one plan made the most sense -- adding another shift of production."

Nate Gooden, UAW Vice President and Director, DaimlerChrysler Department, said, "The passion our customers have for these trucks is matched by the enthusiasm our workforce has when they build them.

The additional jobs will be good for our members and the Detroit area. This is another result of the UAW and the Chrysler Group working together to benefit the workforce, the company and the customer."

Dodge brand pickup trucks are enjoying strong sales demand. Sales of Ram truck models in September totaled 33,924 units, an increase of 82 percent, compared to September 2001. Third-quarter 2002 Ram sales were up 26 percent, compared to the same quarter last year. Ram 1500 sales for September were up 10 percent over the previous month. And recently, the Ram 1500 Quad Cab was ranked first in owner satisfaction among all four-door pickup trucks in AutoPacific Inc.'s 2002 Vehicle Satisfaction Score study.

Meanwhile, Dodge Dakota recorded 11,133 units sold in September, an increase of 16 percent, compared to last September. Third-quarter 2002 Dakota sales were up 11 percent, compared to the same quarter last year.

Dodge's analysis of the full-size and compact truck segments forecasts continued strong demand for Dodge pickup trucks, which has led to plans for increased production.

"We're anticipating the need for an additional 60,000 units per year," said Tom LaSorda, Chrysler Group Executive Vice President - Manufacturing. "Our plan to add capacity to the Warren Truck Assembly Plant will not only help provide those additional units, but will also give us a bonus in added flexibility in production."

As an example, LaSorda said the Warren Truck plant would have the capability to build short-wheelbase ST Quad Cab Ram pickups, and light-duty Rams for the Mexico market.

While some specifics of the plan are still to be determined, it is anticipated the additional production at Warren Truck will come on-stream next summer.

"This is a major step in the Chrysler Group's product offensive," said Bernhard. "A cornerstone of our overall product plan is building the kind of high-quality, bold, powerful and capable Dodge pickup trucks that our customers are so passionate about. And we're pleased to bring more of that work to the Warren Truck Plant."

Gooden added, "Our Warren Truck workers are proud of the quality they put into the Dodge Ram. Now that quality is being recognized by our customers, the result is more investment and employment at their plant. The UAW is very pleased at the decision to increase production at Warren Truck."

Current Facts - Warren Truck Assembly Plant

Location: 21500 Mound Road, Warren, MI 48091

Floor Space: 3.4 Million Square Feet

Acreage: 86.8 Acres

Products: Dodge Ram 1500 Standard Cab and Quad Cab pickups, Dodge Dakota Standard, Club and Quad Cab pickups

Production: 928 Vehicles per day, two shifts

Capacity (Annual): 275,000 (with overtime)

Employment: 3,709 Employees

Training Hours: 58,000 Hours scheduled for 2002 CY

Conveyors: 11.5 Miles

Robotics: 360 Robots in the plant

Computers: 1,439 In system

Union Local: U.A.W. (United Auto Workers) Local #140, #889, and #412

Plant History: Facility was built in 1938 and has been producing trucks since. Dodge Dakota was introduced in 1987. Dodge Ram was introduced in 1993. The second generation Dakota was launched in 1996. The all-new 2002 Ram 1500 was launched in Sept. 2001, with the Quad Cab.