Chrysler To Invest $365 million In Jeep's Toledo Plant

Chrysler Group LLC plans to invest at least $365 million to expand and improve its Toledo Assembly Complex, adding a second shift with more than 1,100 jobs to the plant that currently builds the Jeep Liberty and Dodge Nitro SUVs.

Analysts believe the investment could be the first of a number of expansions — and additional jobs — at the site in future years as the automaker ramps up production to meet global demand for up to seven different current and future vehicles, including the iconic Jeep Wrangler. While Chrysler’s current plans only list a second shift, a third shift at the Toledo North Plant could come if additional demand develops for new products, but that could be several years away.
The complex’s two assembly plants, the Toledo North Plant that builds the Jeep Liberty and Dodge Nitro, and the Wrangler plant, which makes Jeep Wrangler and Wrangler Unlimited, now have one and two shifts, respectively. The plans revealed Thursday would restore a second shift at Toledo North plant for the first time since 2008.
Many of the products that will roll off local assembly lines will be shipped overseas as Chrysler and its Italian partner, Fiat SpA, leverage their worldwide dealer network to boost sales of Jeep — their most popular single brand, and the one most closely associated with the city of Toledo for the last 70 years.
New jobs likely will come to the complex in waves. First will be construction jobs as the automaker expands Toledo North’s body shop, adds an improved welding facility, and upgrades its existing body, trim, paint, and materials handling operations by adding equipment to improve productivity. The application with the city does not mention additional work at the complex’s Wrangler plant, which is struggling to meet demand for the iconic vehicle that had its highest-ever sales month in July.
Chrysler officials, including Jeep brand President Michael Manley and Mr. Marchionne, have expressed concern Wrangler demand could surpass the plant’s production capacity of about 155,000 vehicles per year, meaning further expansion could be forthcoming. Analysts associated with the Chrysler-centric Web site Allpar.com believe six or more vehicles soon will roll from the Toledo Assembly complex: two-door and four-door Wrangler models, a new Jeep Liberty, a Chrysler-badged crossover and a Lancia-badged version of the same vehicle for export, and a new Alfa Romeo SUV.
The automaker also has discussed producing a small Jeep-branded pickup, based on the Wrangler, that could be made in Toledo if the Wrangler plant is expanded. The information comes from long-term product plans released by both Chrysler and Fiat during the last several years.
source Toledo Blade