Chrysler to expand, but shed jobs
Published: Thu, Apr. 19, 2007 12:00AM
Modified Thu, Apr. 19, 2007 02:42AM
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closeDETROIT -- Chrysler plans to build two new plants in Michigan and upgrade three others, but because the plants will be more efficient, there will be a net loss of about 1,400 jobs.
The $1.78 billion investment includes a new axle plant in Marysville and a new plant in Trenton to build the next generation Chrysler V-6 engine.
State and local governments approved tax incentives for the company to keep the plants in Michigan, even though the employment is lower than current levels. "It was a choice between this and no investment," Gov. Jennifer Granholm said, adding that the jobs could have gone to neighboring states or Mexico.
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The announcement comes as Chrysler's German parent continues to talk with potential buyers for its U.S. operations. "The business has a responsibility to keep running" despite the sale talks, chief executive Tom LaSorda said.
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