. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . inDustry neWs
Chrysler to Invest $343 Million in Kokomo Facilities Chrysler Group LLC, Auburn Hills,
Mich., announced it will make two investments in its manufacturing fa- cilities totaling $343 million, a portion of which will go toward the Kokomo Casting Plant, Kokomo, Ind. Chrysler said an investment of
$300 million will fund the installation of equipment and tooling intended to manufacture a new fuel-efficient eight-speed automatic transmission in its Indiana Transmission Plant I and Kokomo Casting Plant. According to a press release issued
by Chrysler, the project will extend the life of both Kokomo manufactur- ing facilities and help retain nearly 1,200 jobs. “The new eight-speed transmission
that we’ll be producing in Kokomo will transform our future product line, but equally important, [it] ensures the future viability of our Kokomo facili- ties and our dedicated workforce,” said Scott Garberding, Chrysler’s senior vice president and head of manufacturing. The announcement came about
one month after the company made a $43 million investment in the same plants to support production of the World Engine and improve processes for the 62TE transmission program. That investment was expected to add 399 new positions to the facilties, including up to 379 for employees called back from layoff status and 20
Kokomo Casting will produce components for Chrysler’s World Engine, a 2.0- and 2.4-li- ter I-4 model used in the Chrysler Sebring Convertible, among other models, as well as a new fuel-efficient eight-speed automatic transmission.
new hires in supervisory positions. The World Engine, a 2.0- and
2.4-liter I-4 model used in the Chrys- ler Sebring and Sebring Convertible, Jeep Compass and Patriot, and Dodge Avenger, Caliber and Journey, is built at a facility in Dundee, Mich. The 62TE transmission is used in the Sebring, Se-
bring Convertible and Town & Country, and the Dodge Avenger, Journey and Grand Caravan. “As Chrysler Group works to imple-
ment the business plan outlined on Nov. 4, 2009, our facilities in Kokomo will play an integral role in achieving those objectives,” Garberding said.
METAL
Union employees of truck maker
Union Agreement Saves Navistar’s Indianapolis Casting Corp. Because closing procedures were
Navistar’s Indianapolis Casting Corp. (ICC), Indianapolis, agreed to a new labor agreement that has stopped closure procedures that have been underway at the metalcasting facility for more than a year. The employees, represented by the
United Auto Workers (UAW) union, “voted to approve significant flexibility and cost improvements” as part of the agreement, according to a statement issued by Navistar. With the agreement in place, the metalcasting facility, which was set to close two days later, will now eventually resume production.
July/August 2010
nearly complete, the facility is expected to continue in its idled state through the summer and begin a slow ramp-up in late fall based on demand. “Like many of the markets where
we compete, the [metalcasting] busi- ness is extremely difficult,” said a spokesperson for Navistar whose name was withheld. “Our ICC busi- ness was no longer viable, and it took these changes in order for Navi- star to continue to produce blocks at this [facility].” Navistar believes the changes to the labor agreement will improve com-
petitiveness by increasing health care cost-sharing by the UAW-represented employees, expanding flexibility of job functions and creating a more predict- able and flexible cost structure. “This is a more contemporary labor
contract,” the spokesperson said. “It’s reflective of the tough market, the glob- al industry and the constantly changing requirements needed to compete.” The new five-year agreement is re-
ported to be “stand-alone,” meaning it is separate from other contracts and no longer negotiated as part of the multi- site main labor agreement Navistar has with the UAW.
METAL For Design engineers & PurchAsers 9
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