Chrysler To Close Michigan Plant…For Good
At the end of 2010 Chrysler is closing a Michigan Sedan Plant – as of now that closure stands. “There is nothing on my desk right now” as in nothing to change plans for the Sterling Heights factory, Sergio Marchionne, who is chief executive officer of Auburn Hills, Michigan-based Chrysler/Fiat, said.
After Italy-based Fiat took a 20 percent stake and management control in the U.S. automaker the Sterling Height factory was among assets left under court protection, post Chrysler Chapter 11. Marchionne said there was no reason to adjust the plan to shut the plant, which makes Dodge Avenger and Chrysler Sebring sedans. People familiar with the company’s thinking have said Chrysler was considering keeping the factory open for as long as two years past 2010 until replacement vehicles could be designed using Fiat technology.
“We are not bleeding as people think we are,” he said. Chrysler may endure “painful” market-share declines as it cuts back incentives that undermine profit on vehicles, he said. Fiat also has completed the purchase of a Turin factory from bankrupt carmaker Bertone, Marchionne said. Fiat has said it will invest 150 million euros ($218 million) in the plant to build vehicles for itself and Chrysler.
via bloomberg
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