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So, Is Jeep Really Moving To China, Or What? Page 2

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2013 Jeep Grand Cherokee

Message From Sergio Marchionne Regarding Jeep Production

October 30, 2012 11:55 AM -- Chrysler Group’s production plans for the Jeep brand have become the focus of public debate. 

I feel obliged to unambiguously restate our position: Jeep production will not be moved from the United States to China. 

North American production is critical to achieving our goal of selling 800,000 Jeep vehicles by 2014. In fact, U.S. production of our Jeep models has nearly tripled (it is expected to be up 185%) since 2009 in order to keep up with global demand. 

We also are investing to improve and expand our entire U.S. operations, including our Jeep facilities. The numbers tell the story: 

  • We will invest more than $1.7 billion to develop and produce the next generation Jeep SUV, the successor of the Jeep Liberty -- including $500 million directly to tool and expand our Toledo Assembly Complex and will be adding about 1,100 jobs on a second shift by 2013. 
  • At our Jefferson North Assembly Plant, where we build the Jeep Grand Cherokee, we have created 2,000 jobs since June 2009 and have invested more than $1.8 billion. 
  • In Belvidere, where we build two Jeep models, we have added two shifts since 2009 resulting in an additional 2,600 jobs.
  • With the increase in demand for our vehicles, especially Jeep branded vehicles, we have added more than 11,200 U.S. jobs since 2009. Plants producing Jeep branded vehicles alone have seen the number of people invested in the success of the Jeep brand grow to more than 9,300 hourly jobs from 4,700. This will increase by an additional 1,100 as the Liberty successor, which will be produced in Toledo, is introduced for global distribution in the second quarter of 2013. 

Together, we are working to establish a global enterprise and previously announced our intent to return Jeep production to China, the world’s largest auto market, in order to satisfy local market demand, which would not otherwise be accessible. Chrysler Group is interested in expanding the customer base for our award-winning Jeep vehicles, which can only be done by establishing local production. This will ultimately help bolster the Jeep brand, and solidify the resilience of U.S. jobs. 

Jeep is one of our truly global brands with uniquely American roots. This will never change. So much so that we committed that the iconic Wrangler nameplate, currently produced in our Toledo, Ohio plant, will never see full production outside the United States. 

Jeep assembly lines will remain in operation in the United States and will constitute the backbone of the brand. It is inaccurate to suggest anything different. 

Sergio Marchionne


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Comments (7)
  1. If Jeep is built in China, Fiat can keep it. How many American would by a car made in China. So far they have killed our pet's, poison our children with lead in toy's, and have given us toxic drywall.
     
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  2. Please read the article: Jeep is not moving to China. Jeep may build some Jeep vehicles for Chinese consumers in China. Big difference. Jeeps for U.S. consumers will continue to be made in North America.
     
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  3. I remember when Rheem ( owned by the Japanese )said they were only building a plant in Mexico to build their builder grade and differently branded heat pumps. They said the same thing. When finished they closed their Milledgeville, GA plant. I would not bet on that Richard.
     
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  4. Well, I agree that we can never be entirely sure about these things. But see my comment below: Jeep is basically doing what every other automaker on the planet does to facilitate distribution and accommodate widely varying styles/standards. It's essentially the same as Hyundai, Kia, Mercedes, Volkswagen and others building plants in the U.S. That's not to say we shouldn't keep an eye on it, only that it's not especially unusual. (Also, I think Jeep would face real problems with U.S. customer loyalty if it moved production to China. But that's an article for another day.)
     
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  5. Another case of "depends on the definition of IS". These jobs are not being created in the US of A, so why would you not admit that creating them in China is effectively outsourcing by a company that we taxpayers bailed out with our hard earned tax money.
     
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  6. If we want to stick with that narrow view of outsourcing, we're going to have to start pointing a lot more fingers. Ford and GM, for example, build huge numbers of cars in foreign countries for ease of distribution. And other companies like Toyota, Honda, Kia, Hyundai, Mercedes-Benz, and BMW have plants in the U.S. to do the same thing.

    So while this is technically a form of outsourcing, I would argue that it's a far cry from Apple, which conducts nearly all of its major manufacturing in one foreign plant, then has products shipped back to the U.S. What Chrysler and other automakers do (i.e. building products in multiple locations for ease of distribution and accommodating widely varying styles/standards) seems a very different thing.
     
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  7. What post on the Obama campaign team does Richard Read hold? His writing is absolutely shameful in it attempt to be biased for Obama.
     
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