{"id":55419,"date":"2012-11-16T09:31:24","date_gmt":"2012-11-16T14:31:24","guid":{"rendered":"http:\/\/www.thedetroitbureau.com\/?p=55419"},"modified":"2012-11-16T09:31:24","modified_gmt":"2012-11-16T14:31:24","slug":"its-chryslers-turn-to-save-fiat","status":"publish","type":"post","link":"https:\/\/thedetroitbureau.com\/2012\/11\/its-chryslers-turn-to-save-fiat\/","title":{"rendered":"It’s Chrysler’s Turn to Save Fiat"},"content":{"rendered":"
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Reporters catch the speech by Fiat\/Chrysler CEO Sergio Marchionne at the Mack Engine Plant.<\/figcaption><\/figure>\n

Chrysler Group LLC operations in the U.S. are profitable enough to support Fiat indefinitely during the unfolding European economic crunch, according to Sergio Marchonne, who serves as chief executive officer of both companies.<\/p>\n

Fiat is sitting on more than $12 billion in cash, and “It has more resources in its industrial business,” Marchionne told reporters after announcing plans to invest $240 million as Chrysler creates 1,250 new job in the Detroit area over the next year by adding a third crew at its truck assembly plant in the suburb of Warren, and brings an engine plant in Detroit back online.<\/p>\n

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Your Global Auto News Source!<\/figcaption><\/figure>\n

Chrysler has rapidly expanded its operations \u2013 reviving several abandoned plants and adding thousands of new jobs \u2013 since Fiat effectively took control following the U.S. maker\u2019s bankruptcy in 2009.\u00a0 Now, it appears to be returning the favor as Fiat\u2019s losses mount in the wake of the worst economic crisis Europe has faced in decades.<\/p>\n

European automakers face definite challenges but Fiat isn\u2019t entirely down-and-out.\u00a0 There is its alliance with Chrysler, continuing success in Brazil and the contribution of healthy premium brands such as Alfa Romeo and Ferrari, which arein a stronger position that mass market European marques.<\/p>\n

\u201cSome of the other players in Europe don\u2019t have the same resources we do,\u201d Marchionne said.<\/p>\n

The Canadian-educated executive also said he was distressed by the efforts of some European governments to prop up distressed automakers. \u201cThis is a violation of the treaty of Rome and the principle of a single market,\u201d he said.<\/p>\n

Consumer demand in the U.S. will remain stable, Marchonne forecast , adding the elimination of the \u201cfiscal cliff\u201d facing the federal government would bolster confidence in the American economy.<\/p>\n

Marchionne said that, overall, Chrysler was bullish about the future. \u201cThese investments will help in building a strong and secure Chrysler,\u201d Marchionne said.<\/p>\n

The addition of the third crew at Warren Truck, employing 1,000 new workers, should be complete by March of 2013, Marchionne said, as he made the announcement of new investment at the company\u2019s Mack Engine plant in Detroit.<\/p>\n

\u201cThe new Ram 1500 built in Warren is already winning praise for its class-leading fuel economy, \u201cwe have the strongest pickup truck lineup in the industry,\u201d he said. \u201cTwenty-five miles per gallon is not inconsequential,\u201d said Marchionne, adding the company is still short of its Pentastar engines.<\/p>\n

Chrysler almost failed to survive its 2009 bankruptcy, even President Barack Obama initially hesitating to offer further bailout cash until Fiat agreed to come to the American maker\u2019s rescue.<\/p>\n

\u201cThose who doubt we (would survive) only have to come here and see how seriously we have taken our responsibility. Today\u2019s program is about investment and jobs,\u201d Marchionne said during the announcement of the new investments.<\/p>\n

Marchionne said Chrysler also was investing $198 million in the Mack plant to prepare it to build the new Pentstar V6 engine, beginning in early 2014. The investment will also keep in operation the engine Mack I plant, which was threatened with shutdown but which will now see the addition of 250 jobs.<\/p>\n

Last month, Chrysler added a third shift at the company\u2019s Jefferson North Assembly plant in Detroit. The plant builds the Jeep Grand Cherokee and Dodge Durango. The Jefferson plant also is slated to begin building a new sport utility vehicle for Maserati.<\/p>\n

(Ironically, that expansion played into the final rundown to the U.S. presidential election when GOP challenger Mitt Romney incorrectly began claiming that Jeep was going to move all of its production to China. Some analysts contend that error, which the campaign refused to correct, cost enough votes to cede Ohio to the Democrats.)<\/p>\n

\u201cHe has delivered on everything he has negotiated,\u201d said UAW Vice President General Holifield, who praised Marchionne for rebuilding Chrysler into a viable enterprise. \u201cToday it is the fastest rising domestic automaker,\u201d Holifield said. \u201cThere are a lot of beautiful things we\u2019re going to create together,\u201d he said.<\/p>\n

(Also ironically, Fiat and the UAW are battling in court over how much the Italian maker should pay to acquire a 3.3% stake in Chrysler from the union\u2019s health care trust. Click Here<\/span><\/strong> for that story.)<\/p>\n

\u201cThere are not a lot of people who believed in you,\u201d said Detroit Mayor David Bing. However, Chrysler comeback can serve as a model for the rebirth of the City of Detroit. \u201cHe has done a masterful job,\u201d Bing said of Marchionne. \u201cBut he hasn\u2019t forgotten about you who do the hard work.\u201d<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

It’s Chrysler’s turn to save Fiat from financial disaster, Sergio Marchionne, the CEO of both makers, revealed. He made his comments during the announcement of a major expansion at Chrysler that will see $240 million in new investments, the reopening of a shuttered plant and the addition of 1,250 jobs. TheDetroitBureau.com was there.<\/p>\n","protected":false},"author":20009,"featured_media":55422,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","footnotes":""},"categories":[8],"tags":[],"make":[],"post-state":[],"category_old":[151],"acf":[],"_links":{"self":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts\/55419"}],"collection":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/users\/20009"}],"replies":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/comments?post=55419"}],"version-history":[{"count":0,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts\/55419\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/media\/55422"}],"wp:attachment":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/media?parent=55419"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/categories?post=55419"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/tags?post=55419"},{"taxonomy":"make","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/make?post=55419"},{"taxonomy":"post-state","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/post-state?post=55419"},{"taxonomy":"category_old","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/category_old?post=55419"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}