Chrysler Group's Windsor Assembly Plant Launches Next Phase Of Flexible Manufacturing

AUBURN HILLS, Mich., Dec. 11, 2002; Chrysler Group's Windsor (Ontario) Assembly Plant will move the company to the next level of flexible manufacturing by adding the all-new 2004 Chrysler Pacifica sports tourer to the same production line as its best-selling 2003 Dodge Grand Caravan and Chrysler Town & Country minivans.

The ability to produce several products under the same roof allows the Chrysler Group to save millions of investment dollars, as well as bring a vehicle to market faster, with better quality and minimal downtime.

With flexible manufacturing, the Chrysler Group will save nearly $100 million (U.S.) for the Pacifica launch while simultaneously reducing tooling and facilities capital expenditures by approximately 40 percent. Savings are realized by using the company's worldwide resources and a total system approach. A combination of creative bidding on tooling, digital manufacturing and full asset-utilization contributed to the overall savings. The company's flexible efforts support the addition of five new products to the current long-range product plan.

"For the first time ever, a Chrysler Group manufacturing facility is able to produce two entirely different products on the same production line as a result of flexible manufacturing initiatives," said Tom LaSorda, Executive Vice President Manufacturing, Chrysler Group. "Flexibility lends to better use of our capacity, which will ultimately increase our ability to meet market demand more quickly, with less cost, while enhancing our competitive position within the industry."

Keys to Flexibility

The key to Chrysler Group's flexible manufacturing is the order in which the body is assembled, using a unique underbody palette system in the body shop. The same flexible palette system has also been used at the company's Sterling Heights Assembly Plant in Michigan (Chrysler Sebring, Chrysler Sebring Convertible and Dodge Stratus sedan products) and the Toledo North Assembly Plant in Ohio -- home of the Jeep® Liberty and Wrangler.

This means that the same production system may be used to build sedans, convertibles, minivans, sport-utility vehicles, and now, sport tourers.

"A flexible manufacturing system will give the Chrysler Group the ability to increase or decrease production with ease, depending on market demand, and ultimately move us closer to obtaining our additional one million units by 2011," said LaSorda.

Production of the all-new 2004 Chrysler Pacifica will begin in early 2003 at the Chrysler Group's Windsor Assembly Plant. While the Pacifica will be built in the same plant as Chrysler and Dodge minivans, the vehicle will not be built on any one of the company's short or long-wheelbase minivan platforms. Chrysler Pacifica will be built on its own new, unique platform, but will use existing corporate components, including the same proven 3.5- Liter V6 engine that powers the award-winning Chrysler 300M.

The vehicles will share several production processes as a result of the plant's ability to accommodate a unique vehicle architecture. For example, Windsor's flexible body shop uses common processes of underbody framing and panel lines, paint systems and final assembly between the Chrysler Pacifica and Chrysler and Dodge minivans. A few unique body sub-assembly systems (engine box, underbody sub-assembly and body sides) for the Chrysler Pacifica are in satellite areas within the Windsor Assembly Plant.

With the production of both Chrysler Pacifica and Dodge and Chrysler minivans, the Windsor Assembly Plant will employ approximately 5,900 employees, and will maintain a line-speed of 1,325 units per day, or more than 330,000 combined units annually on a three-shift operation. Chrysler Group invested more than $300 million (U.S.) into its Windsor Assembly Plant to accommodate the Pacifica production.

Pilot Vehicles

The ability to build multiple products on the same line enables the company to effectively build pilot vehicles, or test prototypes, in the assembly plant much earlier in the launch phase. Building pilot vehicles on the same line as production vehicles allows the company to train employees as well as detect and address any remaining issues to meet stringent quality levels.

The Windsor Assembly Plant will build 140 Chrysler Pacifica pilots on the same assembly line as the minivan before the start of customer vehicle production scheduled for late January 2003. This uninterrupted and continuous approach to production will allow Pacifica production to be increased as the market dictates.

"We are working towards creating a footprint for a flexible manufacturing process that the entire corporation will benefit from," said Mike Tonietto, Plant Manager, Windsor Assembly Plant and Pillette Truck Assembly Plant. "Our employees and the Canadian Auto Workers (CAW) are proud that the Windsor Assembly Plant has been given the opportunity to produce the latest segment- buster from the Chrysler Group. Together we will succeed."