Chrysler Spending $500-million for Jeep Manufacturing

Sergio Marchionne, Chrysler Group chairman, is probably the favorite son of Toledo, Ohio, as he announced yesterday that the company will be investing $500-million in the Toledo Assembly Complex, where the Jeep Liberty and Dodge Nitro are presently built, to build a new Jeep D-segment SUV for export to global markets.

Sergio Marchionne, Chrysler Group chairman, is probably the favorite son of Toledo, Ohio, as he announced yesterday that the company will be investing $500-million in the Toledo Assembly Complex, where the Jeep Liberty and Dodge Nitro are presently built, to build a new Jeep D-segment SUV for export to global markets.

Marchionne described the program as being for “a new advanced architecture that will be the basis for the group’s next-generation sport-utility vehicle beginning in 2013,” and he added that the “future Jeep SUV” will “replace the current Jeep Liberty that will be exported to markets all over the world.”

From Toledo to everywhere.

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The $500-million is part of a $1.7-billion investment for the development and production of the Jeep that is to launch in 2013.

So, what will the $500-million bring to Toledo?

· A 260,000-square foot expansion of the existing body shop

· A new state-of-the-art Metrology Center

· Upgrades to all other areas of the assembly plant

And other monies will be spent on upgrading other Chrysler facilities that will supply the program, as well as on supplier tooling.

This also means that a second shift will be added to the plant, starting in the third quarter of 2013. That’s on the order of 1,100 new jobs.

“Favorite son” may be an understatement.