Detroit Free Press - With demand for car sales rising and Asian automakers facing industry shortages, Chrysler might be in a position to increase production and hire more workers as it seeks to gain market share, according to industry analysts.
The Auburn Hills automaker is considering plans to add a total of 3,000 workers by the end of the year, said Kristin Dziczek, director of the labor and industry group at the Center for Automotive Research in Ann Arbor.
"It goes along with the rising demand for vehicles in the U.S. and the overall recovery of the market," Dziczek said. "And some of it goes with what they think they could pick up from manufacturers who are hamstrung by supply chain issues in Japan."
Bloomberg News first reported on Monday that Chrysler might add shifts at three plants, quoting UAW Vice President General Holiefield. The report said about 1,000 jobs would be added each to Jefferson North Assembly in Detroit, Sterling Heights Assembly and Chrysler’s plant in Belvidere, Illinois.
Chrysler denied the report.
"We have no announcements to make about any additional shifts coming to any one of these plants," said spokeswoman Jodi Tinson.
John Gedney, president of UAW Local 1268, said Chrysler’s two shifts at the Belvidere plant have been working nine-hour days for at least the last four weeks.
Despite the overtime, Gedney said he has not heard any discussions about a third shift at the Belvidere plant, where Chrysler makes the Dodge Caliber, Jeep Compass and Jeep Patriot.
Rebecca Lindland, an automotive analyst with IHS Automotive, said Chrysler had plenty of inventory at the end of April for each of those small SUVs but noted that sales of each vehicle have increased over the first four months of this year.
Lindland also said the most likely plant for a third shift would be Chrysler’s Jefferson North plant in Detroit where Chrysler builds the Jeep Grand Cherokee and the Dodge Durango SUVs. She thinks a shift could be needed there, even though Chrysler added a second shift of about 1,000 workers to that plant just last July.
Through April, sales of Grand Cherokee have increased 86% while Chrysler has sold 13,386 Durangos. Chrysler CEO Sergio Marchionne has also said he would like to make a Maserati branded SUV off the Grand Cherokee.
Chrysler’s total sales though April have increased 22.5% in the U.S. compared with the industry’s 19.6% even though the company has reduced sales to fleet customers has cut incentives. That left Chrysler with a U.S. market share of 9.6%, a small gain.
"I think overall they are looking at opportunities in the market," Lindland said. "And, I think they want to be ready. The last thing you want is to be caught flat-footed in the market."
