Chrysler brings suppliers “inside”

Manufacturing News, Source : The Manufacturer US
Published : 16 Aug 2004 14:50

The Chrysler Group announced plans to instigate a manufacturing project in Toledo, OH, that will feature the use of supplier co-location that has yet to be tried in North America.

The Chrysler Group announced plans to instigate a manufacturing project in Toledo, OH, that will feature the use of supplier co-location that has yet to be tried in North America. Three suppliers will build and manage key manufacturing process facilities for body, paint and chassis operations that are totally within the plant “footprint.”

Part of a $2.1 billion investment, the project will be located on the company’s existing manufacturing complex on the city’s north side and will produce a family of future vehicles for sale worldwide. A collaborative effort between the State of Ohio, City of Toledo and Toledo-Lucas County Port Authority has resulted in proposed support for the project, which is expected to include tax incentives, abatements, land, traffic-related infrastructure changes, and training funds.

Tom LaSorda, Chrysler Group’s chief operating officer, labeled the co-location concept an alternative to the traditional “greenfield site” approach to new manu-facturing facilities employed by many automakers. “At the Chrysler Group, we love to defy conventional wisdom,” said LaSorda. “That’s why—today—23 of our 24 major manufacturing facilities are still in urban locations...and are still part of the economic lifeblood of their communities.”

Construction of the new plant is scheduled for this fall with vehicle production slated for 2006.

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