Friday, September 15, 2006

Chrysler Group Launches Production of All-new 2007 Chrysler Sebring Sedan at Sterling Heights Assembly Plant


* Chrysler's Sebring Sedan part of major expansion in Chrysler Group's Sterling Heights facility

* $500 million investment expands Chrysler Group's Flexible Manufacturing Strategy allowing multiple products to be produced at one plant

* Chrysler Group's ninth all-new vehicle this year, will ignite the segment with stunning design, high levels of safety and reliability, exhilarating performance and excellent fuel economy

AUBURN HILLS, Mich., Sept. 14 /PRNewswire-FirstCall/ -- The Chrysler Group today officially launched production of the all-new 2007 Chrysler Sebring Sedan at its Sterling Heights Assembly Plant (SHAP) that formerly produced the Sebring, Sebring Convertible and Dodge Stratus Sedan. The Chrysler Sebring Sedan represents Chrysler Group's expanding Flexible Manufacturing Strategy (FMS) allowing the Company to bring its new vehicles to market more quickly and the assembly plants the ability to manufacture multiple products on one assembly linThe Sterling Heights Assembly Plant was extensively retooled to manage the complexity of building multiple models on one production line. The Chrysler Sebring program investment of $500 million included multiple plant upgrades, improving quality, productivity and worker ergonomics. SHAP is now able to vary production mix between three products anywhere from 0 to 100 percent of each model and pilot a fourth.

"Since its rollout in 2000, Chrysler Group's Flexible Manufacturing Strategy has been the benchmark within our company," said Fred Goedtel, Vice President - Small/Premium/Family Vehicle Assembly. "Sterling Heights Assembly Plant and Sterling Stamping along with our Belvidere Assembly Plant, are the pioneers of this strategy ultimately allowing the company to bring the right products to the market at the right time."

$278 million was invested at Sterling Heights Assembly Plant to overhaul the body shop and improve the paint shop and assembly areas, including new tooling and about 620 new welding and material handling robots. Further, the plant has the capability to build multiple upper bodies and multiple car platforms, which will allow for the flexibility to add new models or "cross- load" models from other plants in order to better meet the dynamics of the market. The plant has the ability to also produce the Dodge Caliber should market demand lead to that in the future. These new capabilities will support the company's pursuit of product leadership by providing the flexibility to efficiently manage increased distinction between the Chrysler, Jeep® and Dodge brands.

Another $228 million investment improved stamping operations at Sterling Stamping Plant. Sterling Stamping replaced 50 material handling and weld robots and introduced new state-of-the-art processes and capabilities, such as new lean die standards and Common System Architecture (CSA) lines. New lean die standards will reap a 45 percent cost savings over current standards and processes. The new CSA lines allow for greater flexibility by allowing more than one product to be welded and assembled on the same line, while also reducing waste and improving quality. CSA lines can support the manufacture of multiple products and one pilot product at the same time -- a significant improvement from the one line, one product standards of the past.

Flexible Manufacturing Strategy (FMS)

Chrysler Group's Flexible Manufacturing Strategy allows the company to produce a higher quality product, faster, for lower cost. FMS is also a key enabler in the company's plan to launch 10 all-new vehicles in 2006, the most in Chrysler Group's history. In order to balance production with demand, the FMS approach allows the company to efficiently build lower-volume vehicles that take advantage of market niche, and to quickly shift production volumes between different models within a single plant or among multiple plants.

FMS is being implemented product by product and plant by plant across the Chrysler Group. New investment is introducing state-of-the-art technology to Chrysler Group plants allowing the company to produce more than one vehicle on a production line and conduct rolling launches of new models. Additionally, Chrysler Group's workforce is becoming more flexible with the implementation of team concepts and an increased emphasis on supporting assembly line operators.

Robotics

At the core of the new manufacturing process is a body shop comprised of 620 new robots instead of the vehicle-specific heavy tooling that was previously used, for a total of 784 robots in the Body Shop. The Trim, Chass and Final (TFC) areas received a new glass cell, windshield decking, chassis insertion loop system, the fluid fill equipment and rolls-test machines. Each of these improved processes have contributed favorably to the plant's overall productivity and efficiency efforts. Only the robots' end effectors, or "hands," need to change in order to build the different models. That tool change is done automatically, within the time it takes to cycle from one vehicle to the next. A fourth model can also be piloted -- or test-built -- at the same time, helping reduce the time needed to make new-model changeovers.

Smart Manufacturing

A new Workplace Organizational Model, coined Smart Manufacturing, is increasing the flexibility of the SHAP workforce, while fostering greater creativity and innovation from plant employees. This model is being implemented throughout the Chrysler Group's Manufacturing organization in conjunction with the UAW. In addition to extensive training, the new workplace model promotes employee involvement in all facets in the design and processing of the work stations. These changes provide a better work environment for employees and give increased support to assembly line team members while improving the Safety, Quality, Delivery and Costs performance of our operations.

"SHAP is proud to be the home of the all-new 2007 Chrysler Sebring Sedan," said Bob Bowers, Plant Manager - Sterling Heights Assembly Plant, Chrysler Group. "The United Auto Workers and employees are pleased to be contributing toward the Company's goal of world-class operational excellence in 2007 and look forward to attaining a benchmark level status."

Chrysler Sebring

Chrysler is creating inspiration in the common car with the 2007 Chrysler Sebring Sedan. An all-new mid-size sedan, Chrysler Sebring builds on the winning formula begun with the award-winning Chrysler 300 in the large car segment, and more recently, the all-new 2007 Dodge Caliber in the compact car segment. This formula combines stunning design with interior craftsmanship, high-levels of safety and reliability, exhilarating performance and excellent fuel efficiency, all at a surprisingly affordable price. Sebring also features many class-leading technologies not available in the mid-size sedan segment.

The 2007 Chrysler Sebring appeals to buyers who appreciate style, practicality, safety and value. Sebring's elegant and sophisticated design, packaged with interior craftsmanship, exciting new technologies and class- leading safety features, meet the needs of their busy lives.

The 2007 Chrysler Sebring will be available in U.S. dealerships in the fourth quarter of 2006 and in global volume markets in the first half of 2007.

Chrysler Group is the city of Sterling Heights's second-largest employer and has more than 4,500 employees working in two plants. The three million square-foot Sterling Heights Assembly Plant occupies 286 acres. In total, the Chrysler Group provides $150 million in annual wages and more than $5 million in taxable income to the state.

Sterling Heights Assembly Plant opened in 1953 as a jet engine factory. The plant was purchased by Chrysler Group in 1983. SHAP is home to United Auto Workers Locals 1700, 889 and 412.

Sterling Stamping is 2.7 million square feet and employs 2,500. The plant is home to UAW Locals 1264, 889 and 412. The plant investment is just the latest in a long, cooperative partnership with the City of Sterling Heights. Through the DaimlerChrysler Corporation Fund, the Company also has contributed to the sponsorship of the city library's childhood reading program and established a $50,000 grant for scholarships to eligible high school graduate residents pursuing technical training programs. Chrysler Group also is a major sponsor of the annual Sterlingfest Homecoming celebration.


Source: Chrysler Group

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