Chrysler Group Plans to Invest $1 Billion in Fenton Facilities

December 12, 2005

FOR IMMEDIATE RELEASE
Monday, Dec. 12, 2005
Contact: Jessica Robinson, 573-751-0290

Blunt Praises Chrysler Group’s Plan to Invest $1 Billion in Fenton Facilities

FENTON–Gov. Matt Blunt and top Chrysler Group officials today announced the automaker’s plans to invest up to $1 billion in the St. Louis North and St. Louis South Assembly Plants in Fenton over the next several years.

"This investment in the future is extremely good news for our workers and their families and it reflects on our continued efforts to expand economic opportunities for all Missourians," Blunt said. "I am pleased that Chrysler Group has recognized the importance of Missouri’s contributions to the auto industry and the quality of our work force. We look forward to continuing our relationship with our partners at Chrysler Group for many years to come."

The $1 billion investment will be shared between the two plants and is expected to give both plants additional state-of-the-art manufacturing capabilities and modernization. The St. Louis South Plant currently employs 3,200 people and manufactures the Chrysler Town & Country, Dodge Caravan and Grand Caravan Minivan. The St. Louis North plant is home to the Dodge Ram (1500 and 2500) Standard and Quad Cab Pickup and employs 2,300 workers.

The Chrysler Group announcement is another example of Blunt’s commitment to the auto industry. In July, Blunt spoke with Chrysler Group officials to discuss the company’s interest in making significant investments at the Fenton facilities.

"We are committed to creating jobs and investment in Missouri and today’s announcement by Chrysler Group is evidence that our state is being viewed as a great place to do business, which in turn means job creation and better opportunities for all Missourians," Blunt said. "We expect these types of major successes to continue as we work to keep and create high quality jobs in our state."

Blunt also praised officials of Fenton and St. Louis County for working together with the state to put together a deal that helped trigger Chrysler Group’s decision. Blunt in October sent a letter to Fenton officials in support of local tax abatements linked to the Chrysler Group facility.

The Chrysler Group St. Louis South Assembly Plant achieved double digit productivity gains and was listed as the most productive minivan plant in 2005 by The Harbour Report North America. In 2003, the Harbour Report recognized the St. Louis North Assembly Plant as the most-improved plant within the Chrysler Group for increasing its efficiency by 28.6 percent during the launch of the Dodge Ram – a period in which manufacturing efficiencies are typically difficult to achieve. In 2004, the North Assembly Plant showed the biggest productivity gain among auto plants in the area, cutting the labor-hours needed to assemble a Dodge Ram by 15.7 percent.

The automobile industry in Missouri employs approximately 36,500 people making up nearly 12 percent of the state’s total manufacturing employment. The average wage for an auto worker in Missouri is $53,117, well above the state average of $34,855. Missouri has the sixth highest level of auto industry related employment in the United States and motor vehicle manufacturing accounts for 1.8 percent of Missouri’s Gross State Product.

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