Chrysler To Close 8 Plants, Workers To Be Miraculously Unharmed
Bloomberg reports that if Chrysler fails to secure a deal with Fiat and rapidly exit Chapter 11, some 38,500 jobs could be lost in a liquidation. According to one of Chrysler’s lawyers, anyway. But an Automotive News [sub] story says that, in addition to Chrysler’s plant idling during bankruptcy, no fewer than eight of its factories will be permanently closed by December 2010. The best part? According to Chrysler sources, the proposed Fiat deal would allow ChryCo “to retain substantially all our employees.” Huh? “Any employee displaced by the bankruptcy will be given an opportunity at other Chrysler facilities,” explains spokeswoman Dianna Gutierrez. Not only did Chrysler deny that shutting eight plants would cause the negative impacts (job loss) that government billions were supposed to prevent, it went as far to suggest that the Fiat alliance would add about 5,000 employees to the payroll. In fact, if you believe the Pentastar line, there are only two victims in in the Chrysler plan: Sebring and Avenger.
According to AN, the following plants will be part of “Bad Chrysler” and will be shuttered by 2010 (employee numbers from AP):
- Sterling Heights Assembly Plant, MI (hence the welcome Sebring/Avenger deaths, 1,400 employees)
- Detroit Axle, MI (1,650 employees, already scheduled for closure)
- Conner Avenue Assembly (Detroit), MI (Viper, 115 employees)
- St. Louis North Plant, MO (Ram, 1,200 employees)
- Kenosha Engine, WI (850 employees)
- Twinsburg Stamping Plant, OH (1,250 employees)
- Newark, Del (idled)
- St. Louis South (idled)
And the “Good Chrysler” plants are:
- Toluca, Mexico
- Saltillo, Mexico
- Brampton, Canada
- Windsor, Canada
- Toledo North, OH
- Toledo Supplier Park, OH
- Warren Truck, MI
- Jefferson Avenue, MI
- Belvidere, IL
- Dodge Sprinter facilities in Ladson, SC
More by Edward Niedermeyer
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George B said "Lots of money is sitting on the sidelines while the new rules get sorted out." Yes. True, that. Much of it will never come back into this country for investment, because it is actually far safer to place your chips in Communist China or Capitalist India than Fascist Amerika. I never thought I would live to see the day. As for McPain, well, f8, even a stopped clock is right twice a day. Your commentary about McPain is humorous to me because you assume that he was actually a real Republican, i.e. conservative, constitutionally minded, etc. - there hasn't been such a thing in the major parts of that party for decades. McPain was just a RINO. There was almost no difference between his stances on things and Barry's, if you step back and really look with an honest eye. Ron Paul 2012.
As for the huge, most-valuable-spot-in-American-auto-sales (Camcord class) that the Sebring and Avenger will leave once it dies, Chrysler cannot possibly get a Fiat product in it's place in anything less than 2 years. Far too long. Perhaps if Chrysler pays cash money up front, Mitsubishi, and ex-"partner" (i.e. ex-abused spouse) could be convinced to provide badged Galants for sale. Attention President Goodwrench; bonus points!!! Galants are built in "your" home state of Illinois!!! (Deep sarcasm alert for those not paying attention). The Galants are actually far better cars than are the Sebring/Avenger, even if they are not really up to the competition of even the Malibu/Aura. Hey, Mitsubishi? DEMAND CASH UP FRONT FOR EVERY CAR.... Alternately with Fiat being GIVEN a portion of Chrysler (on OUR DIME, i.e. the US Taxpayers) and with Fiat trying to pull a similar fast-on and snagging OPEL, perhaps Fiat could convince President Goodwrench to have GM temporarily build rebadged Saturn Aura (Opel based) cars as Chryslers and Dodges. An ex-Saturn Aura rebadged as a Chrysler Crown?(named after the chapeau of desire of Prez Goodwrench?). Sorry, my sarcasm-meter just pegged again.