The Detroit News - Chrysler Group LLC plans to expand its Toledo Assembly Complex, investing at least $365 million and adding more than 1,100 jobs during the next two years, according to city officials.
Toledo officials presented the information during a meeting Thursday between the city and Toledo school board. The Auburn Hills automaker is applying for city and state tax incentives.
Chrysler Group said in a statement Thursday that "any decision to invest in the Toledo facility would be contingent upon final approval of state and local incentives and final acceptance of all agreements by the company."
City officials told The Detroit News that they believe they are still competing against other municipalities.
"We're very excited about the potential for increased investment," said Jen Sorgenfrei, a spokeswoman for the mayor's office. "We need to bring our A-game. We're the home of Jeep, and we're very proud of that."
The Toledo Blade, which first reported the news, said the city has offered the company whatever assurances it needs to move forward with the plan.
In its application, Chrysler Group said it plans to spend $8 million to expand the body shop at its Toledo North Plant, and $357 million to retool and re-equip the factory complex.
The automaker said it also expects to add 1,050 production jobs and 55 salaried positions at the site.
The hourly jobs would be filled by second-tier workers and start at $14.65 an hour.
In June, Chrysler Group filed an application with the Ohio Environmental Protection Agency stating that it plans to boost production at the plant by as many as 327,000 vehicles annually. That permit was approved in July.
Toledo North currently produces the Jeep Liberty and Dodge Nitro sport utility vehicles. Jeep Wranglers are made elsewhere in the complex.
Analysts say the new investment is likely spurred by increasing global demand for the company's Jeep products.
"Export is this gem for Jeep," said Jim Hall of 2953 Analytics LLP. "You can sell a Jeep in almost any country of the world."
He said Chrysler's parent company, Italy's Fiat SpA, does not have an off-road-capable vehicle like the Liberty, which has created a major hole in its global lineup. That has limited the company's ability to expand, particularly in less developed markets.
Hall noted that an all-new version of the Liberty is due in 2013, when work on the plant expansion is slated to be finished.
"It's much better to build here and export to Europe," Hall said, citing currency considerations and labor issues. "In other regions, it makes more sense to build it locally."
Jeep is looking for a Chinese partner to manufacture some products in and for China.
Fiat probably will build an Alfa Romeo derivative at the Toledo plant, too, Hall said.
"Alfa is asking for two crossovers," he said, noting than one already is earmarked for Chrysler Group's Jefferson North Plant in Detroit.
"To sell Alfa in the U.S., they have to have North American production."
Bringing the Alfa Romeo brand back to the United States is a key part of Chrysler and Fiat CEO Sergio Marchionne's strategy for the Fiat-Chrysler group.
Marchionne hopes to pay for at least part of any expansion with money borrowed from the U.S. Department of Energy. Chrysler has submitted an application to borrow $3.5 billion from the agency to help finance the cost of retooling to build more fuel-efficient vehicles.
"Chrysler's plan to expand operations here is music to our ears," said U.S. Rep. Marcy Kaptur, D-Ohio, whose district includes Toledo.
"As local governmental agencies continue to do their due diligence on the incentive package, I will continue to focus on helping Chrysler obtain the (DOE) loans."
