New New Chrysler Buys Sterling Heights Plant From Old New Chrysler

Edward Niedermeyer
by Edward Niedermeyer

Chrysler Group LLC has some serious faith in its planned Sebring “intervention,” as it has purchased the Sterling Heights Assembly Plant back from the estate of its bankrupt predecessor for $20m. According to the Detroit News, the move was necessary to secure $8.2m in local tax abatements, and as a result, the Sebring and Avenger will continue to be built there until 2012. But, warn ChryCo spokesfolks, “There is no commitment on the future of SHAP beyond 2012,” when the refreshed Sebring will finally be replaced by a new midsize sedan based on a Fiat platform.

Edward Niedermeyer
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  • Autojunkie Autojunkie on Feb 19, 2010

    @ getacargetacheck It sounds like it would make sense, but Chrysler's most flexible plants are only capable of building up to four (common platform) vehicles in a single plant. One of those four places is always kept open for future pilot production, so really they can only build three. It doesn't sound like much, but it's much more flexible than some of the competition. While the future of SHAP is still in doubt, I think it is necessary production capacity that Fiat will need as it's product plans with Chrysler start to mesh.

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    • Windswords Windswords on Feb 19, 2010

      "It doesn’t sound like much, but it’s much more flexible than some of the competition." And this is one of the reasons FIAT is so interested in SHAP in particular and Chrysler in general. Because most of the current products are uncompetitive and dumped on by the press, most people think that Chrysler has old antiquated plants. They have some of the most modern flex plants in the business. FIAT bought into Chrysler for TWO reasons: a distribution channel AND manufacturing facilities.

  • Mtymsi Mtymsi on Feb 19, 2010

    I don't know the exact details but would think the $8.2mm tax break involves keeping the plant open longer than 2012. Insofar as overcapacity goes that has got to be an almost impossible question to answer. Who knows what future products they may have in mind for the plant or what the market acceptance will be? I'm thinking that rather than the current models produced there is why the plant is staying open and was transferred to the new Chryco.

  • John Horner John Horner on Feb 20, 2010

    $20m seems like cheap money for a plant like that, especially if it comes with over $8m in tax breaks.

  • Akear Akear on Feb 20, 2010

    The once great US industry now consists of rebadging cars from other industrialized nations. What happened to American know how. If you create a detailed list by 2015 the only American car engineered in North America will be the Corvette. However, you could say the CTS platform is partly American.