Equipment, machinery among targeted areas with $250 million



DaimlerChrysler is expected to announce more than $250 million worth of renovations and upgrades to its two factories in Sterling Heights at a Tuesday afternoon press conference. Chrysler itself wasn't providing details in advance of the announcement, but Sterling Heights Mayor Richard Notte said the investments will accommodate work on as many as three different vehicles at the Sterling Heights Assembly Plant and the Sterling Heights Stamping Plant, both on Van Dyke in Sterling Heights.

In a tax abatement request filed with the city, DCX said it plans to invest $226,691,085 in new machinery and equipment at SHAP to accommodate the new JS models of the Chrysler Cirrus, Sebring Convertible and Dodge Stratus.

That plant's 2,512 employees currently assemble the JR models of those vehicles. The JS models are five inches taller and three inches wider than the models they replace.

Another $28,389,698 will go toward machinery and equipment at the 2,611-employee Sterling Stamp.

According to the tax abatement applications filed with the city, no new jobs will be created at the two plants, but Notte said this level of investment is good news and means that existing jobs at the plant are more secure.

Chrysler Group COO Tom LaSorda and Chrysler Group executive vice president of manufacturing Frank Ewasyshyn are expected to announce details of the project Tuesday afternoon at the plant. They will be joined there by Nate Gooden, the head of the Chrysler department for the United Auto Workers union, which represents hourly workers at both plants. Notte will also participate in the announcement.

Chrysler is the second largest employer in Macomb County, behind General Motors.

In February, the Michigan Economic Development Corp. approved an almost $19 million tax break for the German-American automaker to support the planned investment at the two plants.

The $18.8 million single business tax credit for the DCX plants is contingent on the redevelopment work.

The city also approved property tax abatements for the properties, effectively cutting in half the amount of city property tax the automaker will have to pay on the new investment, some of which was approved for 12 years and some for eight years.

News of the expected Chrysler renovation in Sterling Heights comes several days after a French auto parts manufacturer said it is planning on building a new plant in Sterling Heights, near 14 Mile and Van Dyke.

Faurecia, a Tier One automotive seating and interior components supplier, is expected to invest about $40 million to expand its operations in Sterling Heights, in order to supply parts to Chrysler.

That plant, which also received a tax break from the state, will create about 440 new jobs.

Sterling Stamping Plant
Products: Stampings and Assemblies: Hoods, Decklids, Quarter Panels, Rails, Roofs, Liftgates, Side Apertures, Fenders and Floor Pans for the Chrysler Sebring, Dodge Stratus, Dodge Ram, Chrysler and Dodge Minivans, Jeep Grand Cherokee, Jeep Liberty and Chrysler Pacifica.

Employment: 2,611 Employees

Union: UAW Locals 1264, 889, and 412

History: Facility was completed and production started in 1965.

Sterling Heights Assembly Plant
Products: Dodge Stratus Sedan, Chrysler Sebring Sedan and Chrysler Sebring Convertible

Employment: 2,512 Employees

Union: UAW Locals 1700, 889 and 412

Plant History: Facility was built in 1953 as a jet engine plant. Converted to an automobile plant in 1980 by Volkswagen, then purchased by Chrysler Corporation in 1983. Production of 2001 M.Y. Dodge Stratus and Chrysler Sebring Sedan began during the fall of 2000, followed by the Chrysler Sebring Convertible.
Products: Dodge Stratus Sedan, Chrysler Sebring Sedan and Chrysler Sebring Convertible