Chrysler Said to Add 500 Jobs at Mexico Plant for Engines
Source: Bloomberg News
Chrysler Said to Add 500 Jobs at Mexico Plant for Engines
By Tommaso Ebhardt & Mark Clothier - Oct 8, 2013 1:55 PM CT
Chrysler Group LLC, the U.S. automaker controlled by Fiat SpA (F), will add about 500 workers at a Mexican engine plant, two people with direct knowledge of the matter said.
Chief Executive Officer Sergio Marchionne will provide details later this week when he visits the Saltillo area, where Chrysler has four plants, with Mexican President Enrique Pena Nieto, said the people, who asked not to be identified speaking ahead of the announcement.
Chryslers investment will total $164 million to expand production at the engine factory in the town of Ramos Arizpe, one of the people said. Shawn Morgan, a Chrysler spokeswoman, declined to comment.
Automakers are expanding production in Mexico to capitalize on lower labor costs that bolster the profitability of vehicles sold in the U.S. market. Chrysler began building the ProMaster, a Ram version of the Fiat Ducato light-commercial vehicle, at a nearby facility in July. Marchionne said last week the van assembled in Mexico uses some parts from Fiats Ducato facility in Italy.
Read more: http://www.bloomberg.com/news/2013-10-08/chrysler-said-to-add-500-jobs-at-mexico-plant-for-engines.html
legcramp
(288 posts)On December 19, 2008, President George W. Bush announced a $13.4 billion rescue loan for the American automakers, including Chrysler.
I'll never buy another K-Car.
KamaAina
(78,249 posts)coldmountain
(802 posts)Both companies also are hiring when many employers aren't. GM has added roughly 2,000 U.S. workers since leaving bankruptcy and now employs 79,000 in the U.S. Chrysler has added almost 12,000 workers and now has about 44,000 in the U.S. Since the bailout started in early 2008, under President George W. Bush, the number of jobs in U.S. auto and parts manufacturing has grown by 156,000 to 780,700, according to government statistics. It's progress for an industry whose workforce is still far below its peak of more than 1.3 million jobs in 2000.
http://finance.yahoo.com/news/why-matters-auto-bailout-122429090.html
Chrysler has added hundreds of jobs in recent months, although many of them don't pay the same high hourly rates of years ago. Still, since it emerged from bankruptcy, Chrysler has hired about 13,000 workers worldwide. Two-thirds of its 63,000 global workers are in the United States.
Read more: http://www.post-gazette.com/stories/opinion/editorials/chryslers-comeback-the-companys-rebound-is-another-bailout-success-667500/#ixzz2hTDw1IrJ
http://www.chryslercareers.com/OurCulture/Documents/Chrysler_CSO2012%20spreads.pdf
jmowreader
(50,559 posts)theaocp
(4,240 posts)for Mexico. Love how they have the jobs (at lower wages) and the profits are made here. What a crock of shit. Why the fuck did this get a rec?
Rebellious Republican
(5,029 posts)Yours my friend, is the proper response.
coldmountain
(802 posts)Americans are so self centered. Chrysler is starting sell cars all over the planet. We are going going to get 1 Italian built Jeep as well but Italy will get 3 American built Jeeps, the Cherokee, Grand Cherokee and Wrangler and eventually a 4th American compact Jeep. Lancia now consists of 2 Italian models and 2 American models. Should FIAT not try to export American built vehicles if they have to build some outside the USA?
Japan is well know to be a closed market for cars. Yes, a large but still a minority of their market are for so-called kei-cars, too small even for Europe. Even substracting these mini-mini cars they still ahve one of the largest markets in the world with only a miniscule amount of European luxury cars being imported.
Rebellious Republican
(5,029 posts)to Mexico to get our jobs back.
abelenkpe
(9,933 posts)My industry moved to Canada.
Rebellious Republican
(5,029 posts)But I could work on it if it were not so damn cold up there.
Populist_Prole
(5,364 posts)"Automakers are expanding production in Mexico to capitalize on lower labor costs that bolster the profitability of vehicles sold in the U.S. market"
Shame on them. It's not like it's for local Mexican demand. How many vehicles won't get sold in the US market due to this "jobless recovery"?
postulater
(5,075 posts)Reference from 2010:
http://www.jsonline.com/business/105499923.html
Where is Scott Walker when you need him?
Wasn't he supposed to be bringing jobs, jobs, jobs to Wisconsin? All we get is an Amazon distribution warehouse. Now those are well-paying jobs compared with making engines!
Not enough O's in Asshooooooooole for that guy.
coldmountain
(802 posts)Since it was formed, Chrysler Group LLC has announced investments of more than $4.5 billion in the United States and Canada; added more than 9,400 jobs; launched 16 new or significantly refreshed vehicles in our first 19 months; and launched production of the all-new, C-segment Dodge Dart, which is being built in the United States using a Fiat-based architecture and fuel-efficient technology. Chrysler Group U.S. sales increased 26 percent, the largest percentage sales gain of any full-line manufacturer - See more at: http://www.reviewjournal.com/opinion/letters/truth-behind-chrysler-bailout#sthash.4RQcEuVW.dpuf
They're building a van in Mexico to sell in Europe, South America and yes North America because that's how the economies of scale and trade agreements work best for this type vehicle. Nissan also builds it's van there which NYC picked for taxi over the American built Ford C-Max.
Fiat is a worldwide company that has had a major South American presence for years. Fiat is the top seller in Brasil. Besides. unlike Japan which doesn't buy foreign cars hardly at all, Americac companies sell a lot of cars in Mexico, so it's fair trade as opposed to the Japanese trade predators.
Psephos
(8,032 posts)awoke_in_2003
(34,582 posts)TPP will fix this
Dont_Bogart_the_Pretzel
(3,273 posts)coldmountain
(802 posts)Phlem
(6,323 posts)oh never mind.
-p
FrodosPet
(5,169 posts)WE need the jobs here. Then we will have more tax revenues that we can use for foreign aid to Mexico.
Marrah_G
(28,581 posts)Doctor_J
(36,392 posts)eilen
(4,950 posts)the information I had at the time said it was manufactured in America. I don't know how many parts/assemblage were imported though. Our family only buys American cars. Chevy is our current brand, my husband drives an Impala.
Indyfan53
(473 posts)Before then, they were assembled in Oshwa, Ontario.
All of the big three are guilt of job outsourcing. The UAW really needs to get on their case.
eilen
(4,950 posts)Indyfan53
(473 posts)GM should build all of their cars here. Detroit only makes a handfull of cars within the city limits.
coldmountain
(802 posts)So there's a heck of lot more help to the US economy than Asian cars, even some of the JpanInc brand cars that are only assembled in the US but designed and engineered in Japan and built in non union Texas, Kentucky or Alabama.
Indyfan53
(473 posts)It would be way more helpful to Detroit to have the cars built in the city and the surrounding suburbs in Michigan. We are still importing cars and exporting our wealth.
coldmountain
(802 posts)What hurts more is all this hollow manufacturing JapanInc does where Americans assemble the cars but the high value work is done in Japan. The Japanese don't buy any American cars like the Canadians, Mexicans and now the Italians do. Fair trade is good, trade predators like Toyota aren't.
BTW, Canadian cars are built with union labor unlike JapanInc assembled in the US.
And yeah, Chrysler is the only car company builds cars in the city of Detroit.
Indyfan53
(473 posts)They build cars at their Detroit-Hamtrammck plant.
coldmountain
(802 posts)Last Car Plant Brings Detroit Hope and Cash
http://www.nytimes.com/2013/07/16/business/last-car-plant-brings-detroit-hope-and-cash.html?pagewanted=all
Indyfan53
(473 posts)It's not the last Detroit plant, but one of the last Detroit Plants.
happyslug
(14,779 posts)coldmountain
(802 posts)Chevrolet Sonic Goes Into Production
Chevrolet's all-new 2012 Sonic has entered production. That's the latest out of the Orion Township, Michigan plant where Chevrolet manufactures the all-new subcompact, currently the only vehicle in its class built in the United States.
With more than 1,700 employees at the suburban Detroit factory - including around 1,600 hourly workers primarily responsible for manufacturing the Sonic - Chevrolet has a lot staked in the small hatchback's success. Offered as a five-door hatch or a four-door sedan, the Sonic will square off against rivals like the newly-released Ford Fiesta, the stylish Fiat 500 and several Japanese and Korean contenders like the Honda Fit, Kia Rio and Soul, and Hyundai Accent.
http://www.autotrader.com/research/article/car-news/115490/chevrolet-sonic-goes-into-production.jsp
Indyfan53
(473 posts)In Wayne, Michigan.
Owl
(3,642 posts)I'd rather pay a few more bucks for your US made vehicle, than not buy it at all.
coldmountain
(802 posts)Chrysler is also selling Jeeps and other American built cars around the world.
Indyfan53
(473 posts)Chrysler still makes engines and transmissions here, but not all of their cars have American-made parts.
Read before you buy!
coldmountain
(802 posts)Mexicans at least buy American cars unlike our Japanese frenemies. Even export powerhouse Hyundai had to withdraw from Japan.
Fair trade with Mexico or Italy is good, trade with Japan or letting them take over our markets is not fair trade.
Spider Jerusalem
(21,786 posts)US-designed and manufactured cars are built for the demands of the US domestic market; many of them tend to be too large for Japanese (or European) streets, and to have abysmal fuel efficiency in comparison to domestic Japanese vehicles (or compared to the cars built for the European market by Ford and GM Europe for that matter). Most of the best-selling cars in Japan are "Kei cars", small vehicles with a legally defined maximum length, width and height (11.2 ft x 4.9 ft x 6.6 ft, because of considerations of on-street parking in a relatively small and crowded country). American manufacturers don't make anything in this category. There's no US demand for them. Bitching about how American cars don't sell in Japan is like complaining that you can't sell freezers to Eskimos. Not to mention that Japan drives on the left and cars are right-hand drive.
coldmountain
(802 posts)Hyundai Withdraws from Japan, To Keep Commercial Fleet
Unbelievable news from one of the most important players in the global automotive industry, South Korean carmaker Hyundai has announced it will pull out from the Japanese passenger car market.
Despite being in constant growth on a global level and registering one of the best results among international carmakers in a difficult recession year like this one, Hyundai has announced on December 1 that all of its Japanese car dealers will cease marketing in the aforementioned country.
The news come from company spokesman Oles Gadacz, via a report from AutoNews.com. With the South Korean auto firm doing so well in other geographic areas and in these uncertain economic times, when other car manufacturers struggle to survive, this decision may appear rather shocking, but the fact is Hyundai returned discouraging sales results in Japan since it entered the market 8 years ago.
http://www.autoevolution.com/news/hyundai-withdrawals-from-japan-to-keep-commercial-fleet-13929.html
Japan is a de facto closed market
Spider Jerusalem
(21,786 posts)If you don't have a product that the market you're trying to break into wants, you're not going to sell anything. This is pretty simple.
coldmountain
(802 posts)In fact Subaru quit making kei cars because of lack of profit
http://www.autoblog.com/2012/03/01/no-longer-o-kei-subaru-steps-away-from-minicar-production/
Spider Jerusalem
(21,786 posts)Unless you're targeting a specific niche (high-end luxury or performance), you can't afford to ignore 40% of the market. Subaru is doing well enough overseas, and Nissan, Mitsubishi, Honda and Daihatsu are all competitive in the kei car market. (Also note that "not profitable enough" doesn't necessarily mean "not profitable", just not as much as selling crossover SUVs to Americans.)
coldmountain
(802 posts)Quit defending Japanese racism
Spider Jerusalem
(21,786 posts)Your point, exactly? European cars have few problems in the Japanese market. Because European carmakers make more products the Japanese want. American cars are not suited to the Japanese market.
http://www.thetruthaboutcars.com/2011/11/lies-damn-lies-and-the-closed-japanese-car-market/
coldmountain
(802 posts)So you want to carry water for a bigoted rightwing pro globalist lunatic like Bertel Schmidt who constantly lied? I guess that proves my point.
http://www.thetruthaboutcars.com/2013/07/estranged-ttac-editor-busted-for-wikipedia-vandalism-then-again-for-conflict-of-interest/#more-494859
Bertel Schmidt is like the posterchild of inverted totalitariansim
Spider Jerusalem
(21,786 posts)You can attack the author of the article all you want, he's totally irrelevant to the fact that VW and BMW and Daimler-Benz have no problems selling cars in Japan.
coldmountain
(802 posts)How Japan has Maintained
The Most Protected
and Closed Auto Market In
the Industrialized World
1.
Japan, the 3rd largest automobile market in
the world, after China and the U.S., is
also the industrialized worlds most
closed and protectionist market.
x
It ranks 30th out of 30 of the OECD countri
es in measuring access for imported autos;
x
Total auto imports to Japan from the worl
d measure only 3.9% of the market. In other
words, Japanese automakers control 96% of their domestic auto market;
x
Although maintaining the most closed automo
tive market in the industrialized world,
Japan has consistently ex
ported over 40% of its car
and truck production, exporting
nearly 60% (6 of every 10 car
s and trucks manufactured) in
2008, with the majority going
to North America and Europe.
x
Since 2000, US exports to Japan 183,000 versus
16.3 million vehicles exported from
Japan to the United States;
x
These millions of cars as well as automotive parts exported from Japan represented over
70% ($52.1 billion of the
total ($72.7 billion) US-Japan au
tomotive trade deficit in 2008.
In contrast, US automakers have been lim
ited to exporting only 183,000 cars and trucks
to Japan since 2000.
x
By anyones common sense standard whether an economist, policymaker, marketing
specialist, consumer or layman, this is
not evidence of an ope
n market, but a rigged
market.
2.
Japans Closed Market isnt natural or an
accident it was created deliberately, by
government policy.
x
Following the closure and banishment of US
auto firms from Japan during the WWII, US
firms were not allowed to return to
establish operations in its aftermath.
x
Instead, Japans designated th
e creation of a major world class automotive industry its
number one National Industrial
Policy strategy and provided
every benefit, incentive and
protection from compe
tition that it could.
x
In the 1970s, Japan finally opened its market
to limited import participation, lowered its
prohibitive tariffs and investme
nt restrictions, but did so
after it had created a massive
and robust industry and controlle
d nearly 100% of its market.
http://s3.amazonaws.com/assets.clients/aapc/aapc/media/181/Japan%27s%20Protected%20Auto%20Market%20copy.pdf?1327366930
BTW, Japan has the highest debt per capita in the world form buying down the yen to help it's exporters and to discourage imports.
And yeah. how many K-cars did Mercedes and Bmw sell in Japan?
Spider Jerusalem
(21,786 posts)coldmountain
(802 posts)Here's How General Motors Holds As No. 1 In China
By JAMES DETAR, INVESTOR'S BUSINESS DAILY
China's been the world's largest car market since 2009 and GM is the country's top seller, offering over 40 models under 7 brands. Foreign players rule China's auto roost, with locals like Geely and Chery still scrambling for a toehold at home and abroad. General Motors (GM) has 14.5% of total sales, followed by Volkswagen (VLKAY) in the second spot with 14.1%. South Korea's Hyundai is No. 3 at ...
Read More At Investor's Business Daily: http://news.investors.com/management-managing-for-success/083013-669386-gm-volkswagen-ford-compete-in-china-market.htm#ixzz2hEg7cB37
Follow us: @IBDinvestors on Twitter | InvestorsBusinessDaily on Facebook
coldmountain
(802 posts)coldmountain
(802 posts)"The current Hyundai i10 is as close as youre ever going to get to get to an Asian kei car in Europe, with its tall yet narrow body and slightly awkward dimensions. Its also quite frugal, not bad to drive and surprisingly spacious most reviews youll get to read/watch really put the little Korean in a very positive light."
www.carscoops.com/2013/08/hyundai-officially-reveals-bigger-2014.html
Spider Jerusalem
(21,786 posts)They're legally defined not only in terms of dimensions but also engine displacement (660cc); the Hyundai i10 is 1L or 1.2L.
jmowreader
(50,559 posts)coldmountain
(802 posts)Dodge Journey Finds Success in Europe as the Fiat Freemont
Fiat is asking Chrysler to increase production of the Fiat Freemont, which is a rebadged Dodge Journey that is sold in Europe.
Fiat originally planned to sell 13,000 Fremonts this year, but Fiat recently told Automotive News Europe that it has already received 15,700 orders for the model. Fiat plans to sell 33,000 Fremonts in 2012, its first full year of sales in Europe. Chrysler originally planned to produce 3,000 units a month, but due to the higher than expected demand, increased that number to 4,067 units in June.
Read more at http://www.thetorquereport.com/2011/07/dodge_journey_finds_success_in.html#zZbbsdhVGX8JLcVh.99
Fiat is selling more and more Chrysler products in Europe. The new made in Toledo Ohio smaller Jeep Cherokee is also aimed at European buyers and will come with a diesel. Chrysler already sells minivan as Lancia Voyagers and Chrysler 300's as Lancia Themas. More smaller vehicles for Europe are on the way from Chrysler.
Art_from_Ark
(27,247 posts)The Nissan March, for example, is smaller than the Suzuki Wagon-R, but the Wagon-R gets the "Kei" designation while the March does not because the engine displacement of the Wagon-R is less than 1 liter (0.658 liter, to be exact), while that of the March, at 1.198L, exceeds one liter .
Spider Jerusalem
(21,786 posts)(and it's 660cc, not 1L)
Art_from_Ark
(27,247 posts)I double-checked at a Japanese site and the specs were as you said. However, the engine displacement is still the overriding factor. Even the Mini Cooper can't get a "Kei" designation because its engine, at 1.59L, is much too big.
coldmountain
(802 posts)Both GM and Hyundai are cleaning JapanInc's clock in China
Art_from_Ark
(27,247 posts)Because that's what Kei car engines are-- 650cc. Even the Mini Cooper doesn't have an engine anywhere near that small. And GM would probably have to be able to sell a Kei car for roughly $11,000 or less to be competitive in the Japanese market.
coldmountain
(802 posts)Art_from_Ark
(27,247 posts)I had thought that "Kei" was actually up to 1000cc, because that is what someone told me the first time I was looking for a car in Japan, but after cross-checking another poster's information with a Japanese site, I found that the maximum size is, indeed, 660cc.
The reason why a "Kei" (meaning "light-vehicle" designation is desirable is that its upkeep is generally much less expensive than a regular ("white plate" car. For example-- the annual tax on a 10-year-old Kei car is around $70, versus $400 or more for a "white plate" car. Inspections and insurance are also generally cheaper for Kei cars, as are highway tolls and gasoline bills, and sometimes even parking fees. I figure I have saved at least $2000 a year by switching from a regular "white number" car to a "yellow number" Kei.
Art_from_Ark
(27,247 posts)Here, for example, is a Chevrolet Japan web page for the Sonic. It even has the steering wheel on the right-hand side.
http://www.chevrolet.co.jp/sonic/price/
The basic model is roughly $19,000, about $3000 cheaper than the Mini Cooper.
It might even be cheaper than the Ford Kuga, although I can't be sure since I would have to fill out all the information on this web page, including name, sex, age, address, etc., just to get an estimate:
https://www.secure.ford.co.jp/quote
coldmountain
(802 posts)Jeeps Sell for $189,750 as China Demand Offsets Tariffs
"Jeep sales rose 63 percent last year to 19,013 -- less than three days worth of China sales for General Motors Co. (GM), the top foreign automaker in the market. Detroit-based GM has 2,900 dealers -- more than 24 times the Jeep number -- that sold 2.55 million vehicles last year, mostly Buick, Chevrolet and Wuling models."
http://www.bloomberg.com/news/2012-05-22/jeeps-sell-for-189-750-as-china-demand-offsets-tariffs.html
Sunlei
(22,651 posts)I know washers/dryers are and a lot of other consumer major goods. I read some basic Mexican workers are paid $7.00 a day.
olddad56
(5,732 posts)coldmountain
(802 posts)Every New Beetle and Jetta sold in the world for the last fifteen years has been built in Mexico
Sunlei
(22,651 posts)broke a couple times and it's only 2 years old. The repair person showed me and said these break all the time now.
seabeckind
(1,957 posts)When is an American company not an American company?
coldmountain
(802 posts)And some make a mockery of fair trade like the Japanese and to a lesser extent the South Koreans and Chinese.
DiverDave
(4,886 posts)That'll have em racing back across the river
And the republican voters in the southern states that have the non union jobs assembling the mexican engines into *cough AMERICAN COUGH COUGH* cars might just see how long their 'good paying' jobs will last.
Keep voting republican you guys, pretty soon 'American made cars' will be designated FIFTEEN PERCENT assembled in America *USA! USA! USA!
It wont end until they are 100% built in central America. ( with pride of course)
But come election time all you will hear is Takin yer guns away and 2 men gettin married??? That dawg just wont hunt, I aint a gonna let em ruin MY marriage.
And they will fall for it ...again.and again and again.
I cannot understand how they vote against themselves time after time, just boggles my mind.
penultimate
(1,110 posts)I'm guessing it's still less than they could make as undocumented workers in the US, aye? If they paid them a decent wage, I woudln't have any many problems with it, because in the grand scheme of things a higher standard of living in Mexico would benefit the US too.
coldmountain
(802 posts)Sheesh. To think many of the people bitching drive JapanInC cars partially built in the US by non union workers with the high value engineering and design done in Japan and they bitch about Chrysler after they spent billions in the US, brought back many jobs from China and Mexico. It's like they can't win.
Can't you see Mexicans saying why should we buy any American cars if they don't build any here?
penultimate
(1,110 posts)but this part "Automakers are expanding production in Mexico to capitalize on lower labor costs that bolster the profitability of vehicles sold in the U.S. market. " leads me to believe that they are having those engines made there and shipped back up to the US to be sold in cars here.
coldmountain
(802 posts)Most of these vans are going to Europe and South America. It will be a niche market in the US like Nissan, Gm and Ford are already doing.
http://www.trucktrend.com/features/news/2012/163_news120725_chrysler_considers_investment_to_increase_pentastar_v6_production/
http://www.autotalk.com/chrysler-could-boost-pentastar-production-again-16055/
http://www.greencarcongress.com/2011/06/chrysler-20110615.html
http://blogs.automotive.com/chrysler-increasing-production-of-the-2013-ram-v-6-engines-at-detroit-area-facilities-119169.html/pentastar-engines-stacked-at-trenton-south-2/
http://www.dodgeintrepid.net/archive/index.php/t-177804.html
brentspeak
(18,290 posts)So you like to begin loaded and fallacious questions with the word "so"?
So you have a link which shows how many US-branded cars made in Mexico are actually purchased by Mexicans?
So maybe you should answer the question asked by the previous poster and which you refused to attempt to answer: "How much do they pay those (Mexican) workers?"
So maybe you should you navigate yourself back over to Right Wingers Pretending to Be Democrats So As to Spread Corporate Bull$hit Propaganda on Democratic Websites.com?
coldmountain
(802 posts)Fiat first wants to find out if Americans will even buy such a van and then they'll build them here.
http://www.fiatprofessional.com/com/Models/Ducato_Goods_Transport
Pterodactyl
(1,687 posts)North Carolina Knigh
(39 posts)Nice
coldmountain
(802 posts)BTW, Fiat is now run from Auburn Hills MI engineering dept by Canadian Marchionne under the supervision of American John Elkann