Chrysler Group is to
invest $72 million in its Toledo Machining Plant in
Ohio, to produce new generation front-wheel and
rear-wheel drive torque converters and steering columns,
subject to the completion of incentive negotiations and
agreements with the State of Ohio. As part of the
investment, 640 hourly and salaried jobs will be
retained.
The announcement comes following a visit from Ohio
Governor John Kasich to Chrysler Group’s headquarters in
Auburn Hills, Mich., where he met with Scott Garberding,
Senior Vice President and Head of Manufacturing.
The new torque converters will be paired with the next
generation eight-speed rear-wheel drive transmission
being built at Chrysler’s Kokomo (Ind.) Transmission
Plant and the all-new nine-speed front-wheel drive
transmission to be produced at the company’s Indiana
(Kokomo, Ind.) Transmission Plant I. The new
transmissions and torque converters are a critical part
of Chrysler’s strategy to meet fuel economy requirements
over the next several years.
“We welcome this investment in Toledo Machining as it is
an acknowledgement of the high quality components that
have been produced by our skilled workforce for many
years,” said Garberding. “Being able to bring new
technology to this facility secures its long-term
future.”
“We are also appreciative of the support we have
received from the State of Ohio in providing the
incentives necessary to make this investment possible,”
said Garberding.
The investment would fund the installation of new
equipment and special tooling to modernize and enhance
the plant’s capability. Work on the plant is expected to
begin late third quarter 2011 and be completed in the
first quarter of 2013.
“We’re very pleased that Chrysler is making the decision
to invest in the Toledo Machining Plant and the skilled
workforce there,” said General Holiefield, Vice
President and Director, UAW Chrysler Department. “This
will help preserve and enhance jobs in the area and give
a greater measure of security to our members and their
families well into the future.”
Construction of the
Toledo Machining facility began in 1964 with production
starting in 1966. The plant expanded in 1969, adding
226,000 square-feet, increasing its overall footprint to
more than 1.2 million square-feet. Because the plant
produces several products specified as vehicle safety
items, Toledo Machining requires precision machining
operations to meet high quality standards.
Toledo Machining currently produces steering columns for
the following assembly plants: Warren Truck (Mich.),
Belvidere (Ill.), Sterling Heights (Mich.), Toledo
Assembly Complex (Ohio); Windsor (Ont.), Toluca (Mex.),
Saltillo (Mex.) and Carabobo (Venezuela). The plant also
produces torque converters, a component that allows the
transmission to shift gears in an automatic
transmission, for Kokomo Transmission (Ind.), Indiana
Transmission I and II (Kokomo, Ind.), Sterling Heights,
Toluca and London, England.
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