Chrysler recalls 300 Kokomo workers

Automaker to introduce new products

By K.O. Jackson

It may not be gaining a large market share compared to other automakers. And it might not be evident on its current bottom line.

But Chrysler Group LLC appears to be positioning itself for a successful, year-end 2010.

And that success is trickling down to Kokomo.

Despite its market share dropping 11 percent at the end of 2009, the Auburn Hills, Mich. company’s sales were up 0.5 percent in February. Its market share has increased to 12.2 percent.

Chrysler’s market share may increase even further as the company introduces new products – even as it says goodbye to its ultimate sports car.

Furthermore, with an increased demand for six-speed transmission production, more work is needed and that is magnified in Kokomo.

Three hundered non-skilled and skilled workers are returning to their Chrysler jobs, said Rich Boruff, president of United Auto Workers Local 685.

Boruff said 175 workers returned Monday, and more are expected to begin working March 22. In all, 257 non-skilled workers and 53 skilled workers are returning to work at the Kokomo Transmission Plant and Indiana Transmission Plant 1.

“Production is picking up,” said Boruff. “With Fiat, we are switching from a four speed to six speed [transmission]. It is going to be a challenge, but it is great to have these people back to work.”

As with any automaker, its market-share success depends upon auto sales. With the company estimating volume for products to continue, Boruff said its schedule shows by July and August, most all laid-off, non-skilled Kokomo workers will be back to work.

“But it all depends on sales,” he added.

Those sales are expected to come from several Chrysler products.

Chrysler is launching an all-new Grand Cherokee in May. The Chrysler 300 and Dodge Charger are using the same chassis, but they are being completely overhauled inside and out.

On March 29, Chrysler begins its final production run of the Dodge Viper. The tiny, sporty, Fiat 500 is waiting in the wings. It’s scheduled to begin production by year’s end.

Again, depending upon sales, Chrysler plans to make only 500 Vipers. After July, the Viper’s Detroit plant will close while officials decide if they should bring back the popular two-seater in 2012.

Currently, automotive analysts say Chrysler is only selling 29 of them monthly.

In December, the Fiat 500 — Fiat’s first U.S. product with Chrysler — will be built at Chrysler’s Toluca, Mexico plant.

Demand for products. Recalled workers. Hello, new vehicles, and see-you-later, Viper. Will any of this increase Chrysler’s market share?

“There is such a disconnect with the Viper and the rest of the Dodge brand. There is a lot of confusion about the [Fiat] 500,” said Jessica Caldwell, senior analyst for Edmunds.com. “The person buying a Viper is spending $90,000 plus. The 500 is in the Mini Cooper market, so you are looking at $15,000. These are two separate ends of the spectrum. The person in the Viper market isn’t looking at a 500. They [Chrysler] need something to bridge the gap between them.

“Chrysler is known for their minivans, aggressive trucks and big engines. I am suspecting they are looking at new buyers for the 500 because the traditional Chrysler buyer won’t have a connection to it. They haven’t said anything public about something in the middle. They need a midsize sedan or a compact. They need something to transition people into it. Right now, it’s just confusing.”

The confusion can possibly be erased once Chrysler gets an opportunity to “tell its story.”

“It’s a crowded marketplace, and you want people to know you,” said Mark Scott, of Autotrader.com. “It’s a shame the Viper is going away. On our Valentine’s Day survey, it was listed as one of the top 10 two-seaters. It really has its fans out there.

“Chrysler has an interesting, marketing challenge in front of them. The 500 is a small, funky, city car. It has cool designs. It’s comparable to the Ford Fiesta. But they [Chrysler] need to tell people what they are doing and how their products line up to others. The market is very crowded. They need to tell what they are doing. They need to tell their story.”

• K.O. Jackson is the business writer for the Kokomo Tribune. He can be reached at (765) 854-6739 or via e-mail kirven.jackson@ kokomotribune.com

Text Only | Photo Reprints