Chrysler unveils viability plan; fate of Fenton plant remains uncertain
Chrysler said it has submitted its viability plan to the Treasury Department today, asking for $2 billion in additional funding beyond the $7 billion it requested from the government last year. So far, the government has given the automaker $4 billion.
Chrysler also outlined some upcoming, albeit vague, restructuring actions:
Reducing fixed costs by $700 million
Reducing work force by 3,000 positions
Reducing one shift of manufacturing
Discontinuing three vehicle models
Taking out 100,000 units of capacity
Selling $300 million additional non-earning assets
The automaker did not say which models would be cut or what plant would lose a shift.
Analysts have said the St. Louis North Assembly Plant in Fenton, where the Dodge Ram is made, is a vulnerable location. The plant is operating only one manufacturing shift, which is considered inefficient, and the Dodge Ram is made at other Chrysler plants in Warren, Mich., and Saltillo, Mexico.
Long and sad but its probably here the fenton plant is done.
The writing is on the wall. With 1 shift and other manufacturing locations the Fenton plant is gone. Sorry to those affected.
Donze, I agree with you.
But what sticks in my craw are the words: Satlillo Mexico.
OK, Naturally the Politico’s and the Pundits forgot to add this caveat to the stimulus package; And Chrysler already has been given 4 Billion?
If you’re taking the taxpayers money for a bailout then the plant you close can’t be in the US.
Close the plant in Mexico and bring those jobs home where they belong.
It is indeed a sad day when jobs are lost in the US
This is a good example of why bailouts by government make no sense. Think Billions of taxpayer money and closing of Fenton at the same time. Chapter 11 could have accomplished the same while the Feds should be spending the money to extend unemployment benefits and health insurance, offer job training/education grants and invest in research. Those monies go directly into the hands of workers. Instead, we got a company on extended life support and hourly workers who had to take an extended holiday layoff.
Why, should we as American’s, support any company that has shifted American jobs outside our border’s? This is reguardless if it is a parts or assembly job.
This just proves how STUPID we Americans are! When are we going to wake up? Maybe be when we are forced to look up to a flag from China!!!
We need American job’s, not supporting over sea’s, non-American company’s!!!
The Fenton plant was done months ago. I was informed by an associate at CTC in November that the tooling to build the Ram Box had been released for build to an OEM in Novi Michigan for implementation in Warren Truck or Saltillo Mexico. That I should take the buyout since very few personnel would be offered relocation packages. So, I did. The timeline for this closure was set before the first gift from the US taxpayers of 4 billion dollars. Now they are back asking for me. Fenton to be CLOSED, for at least 366 days voiding ALL union contracts.
If you have a chance to take a buyout. I highly suggest you do so. Management or Hourly.
Good Luck. I flushed 12 years of my life down the drain. Good thing I put 15K away every year. Instead of buying multiple cars, boats and toys.
It’s important to note that we’re speculating about the plant that will receive the shift cut. I hope we’re wrong but the evidence against appears daunting.
If it were purely an economic decision to be made by Chrysler, I could understand closing the plant in Fenton because I’m certain it has higher labor costs than the Saltillo, Mexico location and is also currently operating inefficiently due to the limited shifts. This says nothing of the fact that the Dodge Ram is likely to see reduced sales numbers for the foreseeable future due to concerns about high fuel prices. So, from Chrysler’s perspective, they’re looking at closing Fenton as a best course scenario in order to put them back in the black. But, What needs to be brought to light, expressed to our representatives, and discussed in the media is that this course of action would be a lose-lose scenario for the average taxpayer and would only service the needs of Chrysler. Not only would we, the taxpayer, be paying for the federal assistance Chrysler is requesting to the tune of $5 billion but we would ultimately be subsidizing a kidney punch to our local economy by losing those limited jobs still employed at the Fenton plant. This would translate into less spending in the economy as families struggle to make ends meet. As they search for alternative employment, families will cut back consumption of local goods and services, negatively impacting the already reeling economy. While the St Louis economy as a whole could weather such a blow in the long run, some families might never recover from it. If we are expected to help a large corporation like Chrysler through this dark time, the least we should expect in return is that they treat the people writing the check with an appropriate level of respect and appreciation. After all, we’re the ones saving their bottom line.
Also, does anyone believe that Chrysler will be upfront with congress in explaining that while they are limiting their shift cuts to 1, that single shift that is cut (if Fenton is chosen) would shut down an entire plant and possibly open the option of selling all or parts of it off meaning it might never reopen.
sgmost you must have your head in the SAND?
Cerberus has been sneaking 600 robots out of the South plant for the last 4 weeks. They were sold back to ABB, the manufacturer.
They are going to do the same thing with the new equipment they put in the North plant last year. The NORTH plant with it’s one shift will be closed.
The complex will be sold to a non American manufacturing concern for over a Billion dollars after Cerberus can cannabalize every sellable asset to whomever will buy it.
I assisted in the dismantling of multiple businesses for Cerberus. That is how they operate only this time they are selling the assets and getting free money from the taxpayers to re tool Saltillo. Where labor is dirt cheap. Thank GOD for NAFTA.