Chrysler Group LLC said Thursday that it will add a third shift — with 1,100 new jobs — at its Jefferson North Assembly Plant in Detroit to meet growing demand for its Jeep Grand Cherokee, which will be offered in a diesel version for the North American market.
The shift would start in early 2013, according to Chrysler. Hiring will not begin immediately, and applications will only be accepted through Chrysler's employment website at www.chryslercareers.com.
Positions are likely to be paid Chrysler's entry-level rate of $15.78 per hour, negotiated in the recent Chrysler-UAW contract.
"Our future, like the history of our brands, is interwoven with the city of Detroit," said CEO Sergio Marchionne in a statement released Thursday. "We believe that investing in Detroit is not only the right thing to do, but it is a smart thing to do as we work to write the next chapter in our shared history."
The United Auto Workers welcomed the announcement.
"We are pleased to have Chrysler Group acknowledge the contributions of the UAW here in the Motor City by relying on our work force to produce two of its most acclaimed vehicles," said General Holiefield, vice president of the union's Chrysler Department, referring to the company's previously announced plan to return production of the SRT Viper to its Conner Avenue factory and employ about 150.
"Our workers nationwide have had a rough couple of years along with the American auto industry, and we are proud to be partners in building a future of success starting right here in Detroit," Holiefield said.
The 20-year-old Jefferson North plant employs about 2,890 workers over two shifts, building the Grand Cherokee and its sister, the Dodge Durango.
These are encouraging times for Chrysler, which was taken over by Fiat as part of the 2009 bailout brokered by the federal government. On Wednesday, the carmaker posted the biggest sales gain of any full-line automobile manufacturer in 2011.
It sold 1,369,114 cars and trucks in the United States last year, an increase of 26.2 percent.
The Auburn Hills automaker increased its share of the market to 10.7 percent from 9.4 percent a year ago.
The company's success is attributed to the popularity of new products like the Grand Cherokee and the Chrysler 200.
The decision to build a diesel Grand Cherokee for the U.S. market is the second such announcement by a Detroit automaker in recent months.
General Motors Co. will start building a diesel version of the popular Chevrolet Cruze at its plant in Lordstown, Ohio, in early 2013.
The announcement of the new shift at Chrysler's Detroit factory came on the same day that Fiat SpA announced it has accomplished the last of three goals the U.S. government set as a condition of its takeover of Chrysler: commencing production of a vehicle — the new Dodge Dart — with an unadjusted combined fuel economy rating of 40 miles per gallon.
Having "irrevocably committed" to producing the fuel-efficient compact, Fiat's ownership of once-bankrupt Chrysler has now been increased from 53.5 percent to 58.5 percent in accordance with the 2009 bailout brokered by the Obama administration.
"The acquisition of a further 5 percent of Chrysler is a fundamental step in completion of the integration between our two groups," Fiat-Chrysler CEO Marchionne said in a statement released Thursday in Turin, Italy.
The added 5 percent in Fiat's ownership stake of Chrysler comes from the UAW's share, but the complicated mathematics of the equation mean the union trust does not lose a full 5 percent of the company. The UAW fund owns the remaining 41.5 percent of Chrysler.
The terms were agreed to by the UAW in 2009, and the union could have avoided the loss by selling its shares before now.
Marchionne has tried to persuade the union to sell its shares to Fiat, but the two sides have been unable to agree on a price. Marchionne has said he plans to use an initial public stock offering as a way to boost the value of those shares and allow the UAW to sell them for a higher price, but he also has said he is in no hurry to do so.
This is the fifth time Fiat has increased its ownership stake in Chrysler in the past year.
Last month, a pre-production version of the Dodge Dart was certified with a combined 40 mpg fuel economy rating.
"With the submission of the letter to the U.S. Treasury, Fiat's stake in Chrysler Group is now 58.5 percent," the company said Thursday.
The 2013 Dart will be unveiled next week at the North American International Auto Show in Detroit. It will be built in Belvidere, Ill., off a platform developed by Fiat's Alfa Romeo brand for the Giulietta.
- by BY BRYCE HOFFMAN bhoffman@detnews.com
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