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UAW Ratifies Contract With Chrysler

DETROIT – Chrysler Group LLC confirmed that the UAW ratified a new labor agreement with the automaker. The automaker also confirmed a number of plant investments.

by Staff
October 26, 2011
2 min to read


DETROIT – Chrysler Group LLC confirmed that the UAW ratified a new labor agreement with the automaker. In addition, the UAW posted a press release confirming the vote as well as more details about specific product commitments in the contract. Chrysler wouldn’t comment on the product plans detailed in the UAW’s announcement.

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Through the term of the new agreement, Chrysler Group confirmed its plans to invest an additional $1.3 billion to retool and upgrade plants for the production of new products. This brings the Company’s total U.S. investment to $4.5 billion. Chrysler Group also stated it could add up to 2,100 new jobs in addition to the more than 2,500 jobs previously added.

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Chrysler confirmed a $600 million investment in its Belvidere, Ill. Assembly Plant. The UAW stated that the plant will be producing a new compact vehicle. The automaker also confirmed an $850 million investment in its Sterling Heights, Mich. plant. The UAW said the investment is for a new compact vehicle.

At Chrysler’s Kokomo, Ind. plant, the automaker confirmed its $1.3 billion investment into its existing transmission manufacturing facilities for production of a new front-wheel drive automatic transmission and future production of an eight-speed transmission. The UAW said the front-wheel drive transmission will be a nine speed, and the eight-speed transmission will be rear-wheel drive.

Chrysler also confirmed it plans to invest $114 million to repurpose about one-fifth, or nearly 400,000-square feet of the Trenton North Engine Plant (Mich.), for the production of core components for the Pentastar engine produced at Trenton South.

Other investments relate to automotive components and tooling.

You can read more about what was in the UAW contracts with the Detroit Three here.

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