Belvidere plant spared in Chrysler cuts

(Crain’s) — Chrysler Group’s assembly plant in Belvidere has dodged a bullet.

The Northern Illinois city was spared when the automaker announced Wednesday it would cut 13,000 jobs over the next two years. In fact, Belvidere may be one of the few bright spots for the ailing auto manufacturer.

Chrysler Group in July fired up a third shift at the Belvidere plant, hiring 1,100 workers, some from other plants, to produce its Dodge Caliber, Jeep Compass and Jeep Patriot. It was the first time the assembly plant operated round-the-clock since it was built in 1965.

“As long as market demand continues for product we produce there,” the plant will not see any cuts, says Michelle Tinson, a spokeswoman for Chrysler Group.

Demand for the three vehicles may be less than what Chrysler Group officials were anticipating, but January sales for the Jeep brand were up 19% from the same month last year.

A representative for the United Auto Workers Local 1268, which represents workers at the Belvidere plant, could not be reached for comment.

Belvidere Mayor Fred Brereton says Chrysler Group’s decision to invest nearly $420 million to allow the plant to build three vehicles seems to have paid off for the city and the automaker. The success or failure of the plant, Belvidere’s largest employer, determines the rise and fall of the city’s financial and psychological temperament, he says.

“We’re very fortunate,” Mayor Brereton says. “The emphasis (from Chrysler) is on smaller cars, which bodes well for the Belvidere plant.”

A plant in Delaware, where the Dodge Durango and Chrysler Aspen are manufactured, and a plant in Warren, Mich., where Dodge Ram and Dodge Dakota trucks are made, were less fortunate. Thousands of workers will lose their jobs when both are closed by 2009.

While three shifts are humming at Belvidere, Mayor Brereton knows the troubles plaguing the U.S. auto industry could find their way to his city.

“There aren’t any guarantees in business today, b