In a tax abatement request filed with the city, DCX says it plans to invest $226.7 million in new machinery and equipment at the assembly plant to accommodate the new JS models of the Chrysler Cirrus, Sebring Convertible and Dodge Stratus.
Another $28.4 million will go toward machinery and equipment at the 2,611-employee stamping plant. According to the tax abatement applications filed with the city, no new jobs will be created at the twoplants, but Notte says this level of investment means existing jobs at the plant are more secure.
Chrysler Group chief operating officer Tom LaSorda and Chrysler Groupexecutive vice president of manufacturing Frank Ewasyshyn are expected to announce details of the project Tuesday afternoon at the plant. They will be joined there by Nate Gooden, the head of the Chrysler department for the United Auto Workers union, which represents hourly workers at both plants. Notte will also participate in the announcement.
In February, the Michigan Economic Development Corp. approved an almost $19-million tax break for the German-American automaker to support the planned investment at the two plants. The $18.8-million single business tax credit for the DCX plants is contingent on the redevelopment work. The city also approved property tax abatements for the properties, effectively cutting in half the amount of city property tax the automaker will have to pay on the new investment, some of which was approved for 12 years and some for eight years.
News of the expected Chrysler renovation in Sterling Heights comes several days after a French auto parts manufacturer said it is planning on building a new plant in Sterling Heights, near 14 Mile and Van Dyke. Faurecia, a Tier One automotive seating and interior components supplier, is expected to invest about $40 million to expand its operations in Sterling Heights to supply parts to Chrysler. That plant, which also received a tax break from the state, will create about 440 jobs.
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