Although Chrysler and General Motors have become a hot political topic in the run up to this year’s U.S. presidential election, specifically the bailout funds received in 2008-09, until now, their CEOs have chosen to remain outside the political debate. However, following remarks made by Republican Party nominee Mitt Romney, Chrysler’s Sergio Marchionne has found himself drawn into the fray. Citing comments made by Romney that Chrysler plans to move Jeep production from Ohio (a key swing state in presidential elections) to China, Marchionne hit back.
He said Romney’s comments were “inaccurate,” and that although he declared “I’m the furthest thing from a politician, I feel obliged to unambiguously restate our position: Jeep production will not be moved from the United States to China. 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.” He also added that U.S. Jeep production has almost tripled since 2009 in order to keep up with worldwide demand.
Chrysler has said that it is re-establishing Jeep production in China to boost its presence in the world’s largest auto market and meet local demand without having to incur costly import fees, which would otherwise render the brand uncompetitive. Marchionne also said the automaker is planning significant investments in its U.S. manufacturing facilities. “We will invest more than $1.7 billion to develop and produce the next generation Jeep SUV, the successor of the Jeep Liberty,” he remarked, “including $500 million directly to tool and expand our Toledo Assembly Complex, plus we will be adding about 1,100 jobs on a second shift by 2013.”
Marchionne also mentioned that Chrysler has invested significantly at its Jefferson North assembly plant in Detroit, which builds the Jeep Grand Cherokee. “We have created 2,000 jobs since June 2009 and have invested more than $1.8 billion,” he declared.
The Chrysler CEO also stated that “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.”
