Chrysler's Belvidere Assembly Plant Calls for 1,000 Workers for Shift Addition

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Researched by Industrial Info Resources (Sugar Land, Texas)--After months of almost nonexistent public activity, The Chrysler Group LLC (Auburn Hills, Michigan) has begun making serious moves to return to profitability. It has taken the automaker months after emerging from bankruptcy protection to announce what changes will be made in the short- and long-terms to rebuild the struggling company. Earlier this week, Fiat SpA (OTC:FIATY) (Turin, Italy) and Chrysler CEO Sergio Marchionne announced sweeping changes at the American automaker. One of the first changes to occur will be restarting the second shift at Chrysler's automotive assembly plant in Belvidere, Illinois, an addition that was first announced in October, but was delayed because of supplier shortages.

Beginning November 17, nearly 1,000 workers will report to the automotive assembly plant for the second shift. Some of these workers will be recalls from Chrysler's layoffs earlier this year, although because many workers accepted buyout offers earlier this year, several of the workers will be new hires. The Belvidere plant currently has 1,700 employees and runs a single shift producing the Dodge Caliber, Jeep Compass and Jeep Patriot.

The goal of this shift-addition is to boost Caliber production before the end of 2009. Chrysler is hoping to increase production by 10,000 units before the end of the year. Thanks to the "cash for clunkers" program, Caliber stockpiles have run low, and Chrysler is hoping to ride the marginal success of the program by producing more vehicles. Production of the 2010 model, which sports updated interiors, wheels and color choices, is scheduled to begin November 30.

The Caliber is scheduled to receive another minor design upgrade in 2010 before being discontinued in 2012, when Fiat will introduce a compact sedan to take the place of Caliber. According to the recent announcement, both the Compass and the Patriot are scheduled for a major redesign in 2010, which Chrysler hopes will increase sales of both models. These changes may be the last gasp for these two vehicles, as sales have been soft in recent years. For additional information, see related article from November 6, 2009 - Chrysler's Long-Term Recovery Plan Finally Announced.

The overall future of the Belvidere assembly plant is still up in the air. The models currently produced at the plant have not sold well, and if these sales cannot be increased, the plant may lose all three models. During the recent day-long announcement about the coming changes within Chrysler, no mention was made about which, if any, plants will survive the company's transitions. Belvidere has a good chance of manufacturing some of the new models, especially the Fiat models being introduced to the U.S., since the plant is Chrysler's newest and most up-to-date facility.

Plant closures are likely to occur as the automaker attempts to rebuild all that it has lost in recent years. Fiat's reintroduction to the U.S. market will certainly save some plants, Belvidere probably among them, but some of the older plants may need to be closed as Chrysler consolidates facilities in the coming years.

Regardless of what the future holds, the addition of 1,000 workers at Belvidere is good news for northern Illinois. How long the plant's second shift will be needed is still uncertain. If Caliber sales can be boosted, the second shift has a good chance of remaining beyond the New Year. However, if this gamble does not pay off, the shift addition will be only temporary. While the shift addition has been announced as a temporary measure from the start, seeing Chrysler able to retain the services of these workers for a long period would be nice.

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