The Kenosha Chrysler engine plant is scheduled to be shut down in 2010. However, it appears that Chrysler’s Italian parent company, Fiat SpA, is still considering the plant for future operations. Since the announcement in July that the Kenosha Chrysler plant would be shut down next year, Fiat officials have taken three tours of the plant, said Glenn Stark, United Auto Workers Local 72 president, who has been on the tours with Fiat officials.
Chrysler and Fiat declined to comment about the tours of the Kenosha plant.
“Under terms of the master transaction agreement, the Kenosha assembly plant was assigned to OldCarco LLC and is scheduled to close in December 2010. We have not announced any changes to that plan,” said Chrysler spokesman Max Gates.
One option for the plant that has been floated would be to use it to make engines for tractors produced in Racine by CNH Global, which is subsidiary of Fiat.
Kenosha Mayor Keith Bosman said city officials have not been in communication with Fiat regarding the plant. The city is assessing site cleanup plans to increase the value of the property for 2010, he said.
“The city is currently working on eliminating buildings and doing site clean up so a year from now we will have better property for interests on either the Fiat party or any other potential party,” said Bosman.
A task force was created in April and meets monthly to discuss the future of the plant. Task force members include Stark, Gateway Technical College president Bryan Albrecht, Bosman, Kenosha County Executive Jim Kreuser, Andy Palmen president of Palmen Motors, Kreuser’s assistant, Jenny Tunkieicz, Tim Mahone of gov. Doyle’s office, Kenosha city administrator Frank Pacetti, John Drew of the UAW and Todd Battle of the Kenosha Area Business Alliance (KABA).
“Everyone in Kenosha and the surrounding area is concerned about the future of the Chrysler engine plant facility and the people working at the engine plant,” said Albrecht. “City and county officials are working together with Gateway and the business community to ensure that all opportunities are explored and that we are prepared for any changes that may occur during the 2010 closure of the Kenosha facility. In economic times like we are facing it is important that Fiat or any other organization be aware of the commitment the Kenosha community is making to ensure productive and efficient manufacturing facilities and a highly trained workforce is readily available. The task force is dedicating its time in preparing for positive manufacturing future for the Kenosha Engine Plant.”
About 700 people work at the plant now.
“Leaders have conveyed the message that we have workforce and we welcome the opportunity to work for Fiat. It needs to be a community effort,” said Stark.
Stark said he was disappointed by the announcement in August that Chrysler will manufacture Fiat SpA’s Fiat 500 subcompact at a Mexico plant. However, he is hopeful that Fiat will choose to utilize the Kenosha facility for other business units. Fiat’s other units include their CNH Global subsidiary and Fiat Powertrain Technologies.
Stark said he is impressed with Fiat’s manufacturing processes and would welcome product development for other business units to the plant.
“When the plant was owned by Daimler there wasn’t product development and the previous owner didn’t have any product development either,” he said. “Fiat at the time of Chrysler bankruptcy takeover had a few things on the drawing board and does product development.”
According to Bosman, Chrysler has already put in about $600 million dollars into the facility and he would like to see the plant regain production.
The Kenosha plant currently produces the 2.7L V6 and 3.5L V6 gasoline engines that have been used for the Chrysler Sebring, Avenger and Charger lines.
Sergio Marchionne, chief executive officer of both Chrysler and the Fiat Group will announce Chrysler’s five-year product plan on Nov. 4. Industry rumors surrounding the plan have included Fiat bringing a smaller car into the United States to replace the Chrysler Sebring and Avenger, dropping the Dodge brand from the European market, and replacing the Cummins diesel engine in the Dodge Ram trucks with a Fiat diesel engine.
