Chrysler Group's Jefferson North Assembly Plant Launches 2005 Jeep(R) Grand Cherokee Production

* $241 million investment revamps the plant, while ensuring consistent quality with each vehicle that rolls off the line

DETROIT, Aug. 25 -- Chrysler Group's Jefferson North Assembly Plant (JNAP) in Detroit is flexing its manufacturing muscle as it gears up for the launch of the all-new 2005 Jeep(R) Grand Cherokee. With a $241 million capital investment that involved a significant overhaul of the plant's body and paint shops as well as the implementation of innovative processes, JNAP is ramping up to accommodate the Grand Cherokee's chiseled vehicle design and new product features.

"By overhauling many critical areas at Jefferson North, the facility is now better positioned to implement smart manufacturing techniques, using a balanced combination of robotics, people and processes to run a more efficient assembly line," said Frank Ewasyshyn, Chrysler Group Executive Vice President - Manufacturing. "Smart manufacturing also doesn't compromise design or quality. Even with the addition of many new high-tech product features, we've built in consistent quality with each vehicle that rolls off the line."

The 2005 Grand Cherokee continues a tradition of Jeep innovation with state-of-the-art technologies, sophisticated all-new Jeep design and the latest in on-road refinement and off-road capability. Delivering exhilarating performance with its 325-horsepower 5.7-liter HEMI(R) V-8 engine and MDS, the Jeep Grand Cherokee produces 25 percent more power, increased fuel efficiency and lower emissions than the previous-generation model.

JNAP went through a three-week tooling, equipment and manufacturing process changeover this summer. As a result, the plant is now equipped with the capability to build multiple models, while simultaneously piloting an additional vehicle. It also has the ability to implement future product introductions with a rolling launch strategy, minimizing production loss.

The launch preparation had engineering, manufacturing and supplier teams working together at the plant, test-building pilot vehicles on the same assembly line, helping validate vehicle quality and getting on-the-assembly- line training.

Reusing Existing Equipment

In order to launch multiple vehicles at the same plant, in a short span of time and with less capital investment, Chrysler Group continues to apply a plant asset reutilization strategy. At JNAP, the majority of the body shop assets (robotics, tooling, conveyor lines, etc.) were reused, creating a new body shop with existing equipment and within the plant's current floor plan.

As a result, the company was able to redirect millions of dollars towards other projects within the company, rather than tie it up in capital equipment. Past practices would have called for the removal and scrapping of all equipment for the new model.

Extreme Makeover

JNAP's body shop went through an extreme makeover, which required the re- building of the entire operations, in an area of unused white space. Over 200 robots in the existing body shop were refurbished for the launch and approximately 75 percent of the conveyor line system was either modified or replaced. Similar technology and processes used at other Chrysler Group plants that recently launched new vehicles were applied to the facility's makeover.

Paint shop changes also contributed to plant flexibility. The plant launch team added new robotics, changing the sprayers in the paint booths to allow for greater coverage of paint on varying body styles. The new technology will also enhance the paint finish on the Grand Cherokee.

Adoption of new quality processes and the addition of sound-dampening technology for a refined driving experience were implemented for the 2004 Grand Cherokee and are being carried into the 2005 model year program.

Training

A staggered training strategy played a critical role in ensuring high quality levels right out of the launch gate. This approach included early process training with plant employees at Chrysler Group's pilot operations in Auburn Hills, as well as extensive training at the plant. It also verified safe operating practices by validating ergonomically related processes that were originally created and tested with digital computer tools. Nearly 2,800 plant employees benefited from more than 100,000 hours of training in preparation for new vehicle production.

"Jefferson North is already one of the most-efficient mid-size SUV plants in North America," said Erwin Raphael, Jefferson North Assembly Plant Manager. "With the many plant improvements made in anticipation of the launch of the 2005 Grand Cherokee combined with a world-class, dedicated workforce, we'll continue to support the company's goals to achieve benchmark status in productivity and quality."

Jefferson North Assembly Plant began production of the all-new 2005 Jeep Grand Cherokee on July 26. The vehicles will arrive at dealerships this fall. For international markets outside of North America, Chrysler Group manufactures Jeep Grand Cherokee at the Magna Steyr Manufacturing Facility in Graz, Austria.