Welcome Home: Chrysler buys back plant from itself for $20M
 

Filed under: Hirings/Firings/Layoffs, Plants/Manufacturing, Chrysler, Dodge, UAW/Unions

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When General Motors and Chrysler were going through bankruptcy proceedings last spring and summer, we learned of several plants that were tagged for closure. Any time a plant closes, it's a huge blow to the area around the plant, as UAW factory jobs provide a good standard of living for thousands of area residents. Among the plants scheduled for moth balls was the Sterling Heights, MI facility that currently produces the Dodge Avenger and Chrysler Sebring, but a report from Automotive News shows that the plant may have new life.

Chrysler is reportedly buying the Sterling Heights plant back from the shell company set up to sell off Team Pentastar's bad debt. According to bankruptcy court documents, the facility reportedly fetched a sale price of $20 million; a mere fraction of the cost of a new plant, which can siphon a billion dollars or more. Old Carco, LLC reportedly didn't have any other offers for the plant, which was valued at up to $21 million. The move will likely ensure that the Avenger and Sebring will receive their purported major refresh and continue on the market for the foreseeable future. Also relieved are the 1,200 union and salaried employees who work at the plant.

[Source: Automotive News - Sub. Req'd]

Welcome Home: Chrysler buys back plant from itself for $20M originally appeared on Autoblog on Mon, 22 Feb 2010 09:00:00 EST. Please see our terms for use of feeds.



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