New multi-company plant in Michigan
02-11-2003, 09:53 AM
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New multi-company plant in Michigan
Auburn Hills, Michigan, Feb. 11 (Bloomberg) --DaimlerChrysler AG's Chrysler unit, Mitsubishi Motors Corp. and Hyundai Motor Co. may announce today that they've selected a Michigan location for a plant that will make small-car engines for all three, analysts said.
Chrysler plans a "major'' announcement at 12:30 p.m. Detroit time at its Auburn Hills, Michigan, headquarters with Michigan Governor Jennifer Granholm, said company spokesman Mike Aberlich. He declined to elaborate.
"There's been a lot of activity in Michigan, Indiana and Ohio about this engine plant and I'm sure this is to announce it will be in Michigan,'' said IRN Inc. analyst Mike Wall, who advises suppliers on auto parts programs including the engine plant.
The new plant, which analysts estimate will cost $1 billion, would produce about 600,000 engines a year and be part of a plan to build 1.5 million motors annually for subcompact cars starting in 2004, Chrysler Chief Executive Dieter Zetsche said in January. The new factory may allow Chrysler to recall laid-off workers, after 26,000 jobs were cut the past two years in an effort to return to profit after seven quarters of losses.
The companies will split the cost of the plant, Zetsche said earlier. Chrysler would run the plant.
Alliances are among the measures Chrysler used to lower development costs to $5.4 billion last year from an average of $8 billion over each of the previous five years, Zetsche has said. The alliance will be the biggest producer of a single engine design in the world, Zetsche expects.
Hyundai Motor, 10.5 percent-owned by Stuttgart, Germany-based DaimlerChrysler, will start making engines in 2004 in South Korea, while Japan's Mitsubishi Motors, 37 percent-owned by the German automaker, expects to build versions starting in 2005.
Chrysler plans a "major'' announcement at 12:30 p.m. Detroit time at its Auburn Hills, Michigan, headquarters with Michigan Governor Jennifer Granholm, said company spokesman Mike Aberlich. He declined to elaborate.
"There's been a lot of activity in Michigan, Indiana and Ohio about this engine plant and I'm sure this is to announce it will be in Michigan,'' said IRN Inc. analyst Mike Wall, who advises suppliers on auto parts programs including the engine plant.
The new plant, which analysts estimate will cost $1 billion, would produce about 600,000 engines a year and be part of a plan to build 1.5 million motors annually for subcompact cars starting in 2004, Chrysler Chief Executive Dieter Zetsche said in January. The new factory may allow Chrysler to recall laid-off workers, after 26,000 jobs were cut the past two years in an effort to return to profit after seven quarters of losses.
The companies will split the cost of the plant, Zetsche said earlier. Chrysler would run the plant.
Alliances are among the measures Chrysler used to lower development costs to $5.4 billion last year from an average of $8 billion over each of the previous five years, Zetsche has said. The alliance will be the biggest producer of a single engine design in the world, Zetsche expects.
Hyundai Motor, 10.5 percent-owned by Stuttgart, Germany-based DaimlerChrysler, will start making engines in 2004 in South Korea, while Japan's Mitsubishi Motors, 37 percent-owned by the German automaker, expects to build versions starting in 2005.
