| Chrysler is bringing production
back in-house. Magna Steyr will no longer build the Voyager MPV and 300C
luxury models at its Graz plant in Austria when current models are replaced.
Production of the 300C Sedan and Estate for export markets is moving to
the Brampton, Ontario plant. It makes the 300C for the US and the Dodge
Magnum, Charger and the Challenger.
Brampton was going to get the Chrysler Imperial, a luxury model based
on the 300C but considerably larger. In the face of pending fuel economy
legislation, the model was cancelled.
“We had agreements with the Canadian Auto Workers union for new
product and as a result shifting production of the 300C back to our own
plant in Ontario was the right thing to do economically,” said Chrysler.
“Production at Magna Steyr will cease when the vehicle is replaced
in 2010.”
Chrysler has been investing heavily in key North American plants, adding
flexible manufacturing capability. The US automaker has invested more
than $500 million in its St Louis South plant in Missouri. It makes export
versions of the MY2008 Dodge Grand Caravan and Chrysler Town & Country
MPVs – replacements for the Voyager currently built by Magna.
It’s also becoming cheaper to build in the US. “The weakness
of the dollar is making it more attractive to to produce vehicles here
instead of making them in western Europe,” said Chrysler. “It’s
also important to use our own capacity rather than suppliers’ capacity
at this point.”
Production of the Voyager and 300C at Graz started in 2002 and 2005 respectively.
Magna is currently the only producer of right-hand drive and diesel 300Cs.
It will continue to build the Jeep Grand Cherokee. |
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