Romney Campaign Ad on Jeep Outsourcing Gets Response from Chrysler CEO
By: Scott Picken
Updated: October 30, 2012
BELVIDERE-- A campaign ad by Republican Presidential nominee Mitt Romney in Ohio infering that Jeep will shift production from the United States to China has brought a response from the CEO of Chrysler, which builds Jeeps. Sergio Marchionne issued a statement saying, "I feel obliged to unambiguously restate our position: Jeep production will not be moved from the United States to China." (underlined for emphasis by Marchionne in news release).
Marchione then mentions how Chrysler is ramping up Jeep production in the United States, including "In Belvidere, where we build two Jeep models, we have added two shifts since 2009 resulting in an additional 2,600 jobs." He ends his statement by saying, "Jeep assembly lines will remain in operation in the United States and will constitute the backbone of the brand. It is inaccurate to suggest anything different." You can read his full statement below.
The news comes as Chrysler reported huge 3rd quarter profit growth and a ramp up in production company-wide. The Belvidere assembly facility has also increased production of the new Dodge Dart, a compact car which has become a brisk seller. UAW workers are also eligible for a $1750 bonus should the company reach its profit goals for 2012, which now appears likely.
Marchionne's full statement:
North American production is critical to achieving our goal of selling 800,000 Jeep vehicles by 2014. In fact, U.S. production of our Jeep models has nearly tripled (it is expected to be up 185%) since 2009 in order to keep up with global demand. We also are investing to improve and expand our entire U.S. operations, including our Jeep facilities. The numbers tell the story:
-We will invest more than $1.7 billion to develop and produce the next generation Jeep SUV, the successor of the Jeep Liberty -- including $500 million directly to tool and expand our Toledo Assembly Complex and will be adding about 1,100 jobs on a second shift by 2013.
-At our Jefferson North Assembly Plant, where we build the Jeep Grand Cherokee, we have created 2,000 jobs since June 2009 and have invested more than $1.8 billion.
-In Belvidere, where we build two Jeep models, we have added two shifts since 2009 resulting in an additional 2,600 jobs.
With the increase in demand for our vehicles, especially Jeep branded vehicles, we have added more than 11,200 U.S. jobs since 2009. Plants producing Jeep branded vehicles alone have seen the number of people invested in the success of the Jeep brand grow to more than 9,300 hourly jobs from 4,700. This will increase by an additional 1,100 as the Liberty successor, which will be produced in Toledo, is introduced for global distribution in the second quarter of 2013.
Together, we are working to establish a global enterprise and previously announced our intent to return Jeep production to China, the world's largest auto market, in order to satisfy local market demand, which would not otherwise be accessible. Chrysler Group is interested in expanding the customer base for our award-winning Jeep vehicles, which can only be done by establishing local production. This will ultimately help bolster the Jeep brand, and solidify the resilience of U.S. jobs.
Jeep is one of our truly global brands with uniquely American roots. This will never change. So much so that we committed that the iconic Wrangler nameplate, currently produced in our Toledo, Ohio plant, will never see full production outside the United States.
Jeep assembly lines will remain in operation in the United States and will constitute the backbone of the brand. It is inaccurate to suggest anything different.
Sergio Marchionne
