April 19, 2007
Chrysler Group to invest US$1.78 billion in Michigan
Auburn Hills, Michigan – The Chrysler Group has announced it will boost the Michigan economy with an investment of $1.78 billion (all prices U.S.), much of it to start a multi-product “Powertrain Offensive.”
The initiative will include $730 million for a new plant in Trenton, Michigan to produce the “Phoenix” family of V6 engines; $700 million in Marysville to build a new axle plant; $300 million into its Sterling Heights Assembly Plant to expand its paint shop; and $50 million for retooling of Warren Truck Assembly Plant and Warren Stamping Plant for future products.
“This is an important day for the future of the Chrysler Group, and in particular for the continued competitiveness of our operations in the State of Michigan,” says Tom LaSorda, Chrysler Group President and CEO. “We have a vision to grow our business and transform the Chrysler Group into a stronger company that will be competitive for the long run. The investments we are announcing today prove that we are investing in this vision.”
The Michigan program includes product development costs and is part of the “Recovery and Transformation Plan” that LaSorda announced in February. The Powertrain Offensive is a $3 billion investment product for building and retooling existing plants that will produce more fuel-efficient engines, transmissions and axles, and provide the Chrysler Group with a more competitive powertrain portfolio.