$700 Million Retool of the Toledo Jeep North Assembly Plant Announced
July 15, 2016
By: Norwalk Reflector
July 15, 2016
TOLEDO — Fiat Chrysler Automobiles today announced its planned $700 million investment in the Toledo Assembly Complex North Plant to produce the next generation Jeep Wrangler.
“This is almost beyond belief, given where we were eight short years ago,” said U.S. Rep. Marcy Kaptur, the co-chair of the Congressional Auto Caucus who for the past eight years has spearheaded efforts to support the comeback of the US domestic automobile sector.
“This is the great American comeback story of this century, and it’s a testament to the superb quality of the Jeep Wrangler, and the superb quality of the Toledo Assembly Complex frontline assembly workers, the plant management, the countless brilliant engineers, and its partnership with the United Auto Workers’ Local 12. For 75 years Toledans have manufactured Wranglers. FCA’s investment today will ensure this legacy remains for years to come.”
According to initial reports, the expansion of the North Plant will create 700 new jobs. An announcement regarding the future of the South plant is forthcoming. This production action is subject to the formal approval of incentives by state and local entities.
Kaptur continued: "The auto industry is the industrial backbone of Toledo, of northern Ohio, of the Midwest, and, frankly, the nation. Its recovery, which I was privileged to support and organized for legislatively, even when it was an unpopular position to take, is reflected in the six years of continued sales growth and increased revenue data. Slowly and surely, Toledo and northern Ohio's future is being reshaped and reinforced by announcements like the one FCA is making today. When given a fair chance, we will compete and we will win.”
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EDITOR’S NOTE: Below is a story published Thursday by the Rockford Register Star in Rockford, Ill.:
Fiat Chrysler's Belvidere plant gets $350M, 300 jobs to retool for Jeep Cherokee
By Adam Poulisse
Rockford Register Star, Ill. (TNS)
BELVEDERE, Ill. — A $350 million investment and 300 new jobs are coming to Fiat Chrysler Automobile’s plant here as the company retools for Jeep Cherokee production.
Fiat Chrysler made the announcement at 4 p.m. today.
The plant now produces Dodge Dart, Jeep Compass and Jeep Patriot models. Production of Darts will end in September, and Compass and Patriot production will cease in December.
Speculation that the Jeep Cherokee would move to Belvidere started last fall. Automotive News reported that Cherokee production would be phased out at a plant in Toledo, Ohio. In May, Fiat Chrysler CEO Sergio Marchionne said in Turin, Italy, that the hot-selling Cherokee would be made in Belvidere.
Fiat Chrysler is betting that gas prices remain low in coming years. So it is investing in trucks and SUV production instead of smaller vehicles. Last year 220,000 Jeep Cherokees were sold. Marchionne said in May that he chose Belvidere because he needed a plant that could produce 300,000 cars a year.
The announcement "sounds extremely significant," Terrinoni said, and it's "most appreciated having that kind of investment in the community."
Fiat Chrysler says the 5-million-square-foot Belvidere plant employs 4,500 people.
Companies that supply parts and components for the Belvidere plant, clustered in commercial spaces in and around the plant, employ hundreds more. They operate in warehouses that schedule parts shipment to coincide with vehicle production.
The model change will mean a change in the supplier base and a scramble for real estate for inbound suppliers.
"There has been a lot of interest in Boone County and the Belvidere area from companies that normally supply Fiat Chrysler US," said Jarid Funderburg, executive director of Growth Dimensions, the economic development agency for Belvidere and Boone County.
"I think that is anticipated with any line change."
Funderburg said much of the real estate shopping has been done by site selectors hired by companies to find them property and/or buildings.
"If they can’t find a good home in Belvidere, I sure hope they find it as close as possible in Winnebago County," he said.
The auto assembly plant is a regional economic powerhouse.
Jimsi Kuborn, vice president of investor relations for the Rockford Area Economic Development Council, said a government study found that for every 100 jobs created at the Belvidere plant, 46 additional second- and third-tier jobs are created. And every $1 million in output at the plant results in $322,000 output by other industries in the region
"It’s a great win for Belvidere and Boone County," Kuborn said, who noted 55 percent of plant employees live in Winnebago County.
Boone County Board Chairman Bob Walberg said he's looking forward to what it will bring to the county, and the region.
"Typically, all the (employees) don't reside in Belvidere or Boone County. We should get a significant portion of (them)," Walberg said. "It'll certainly add to our community. They'll be bringing paychecks home to spend in our community."