Thursday, March 15, 2007

Chrysler Hung Up on Imperial Production

Canadian Auto Press(Canadian Auto Press) - 3/15/2007

Chrysler Group had some pretty impressive debuts at the 2006 North American
2006 Chrysler Imperial Concept
Chrysler wants to build the magestic Imperial, but the CAW says, no way. At least not with a pay cut... (Photo: Justin Couture, Canadian Auto Press)
International Auto Show a year ago January. Dodge wheeled out the Caliber, the little hatchback with SUV spirit that continues to sell like hotcakes. Jeep also had the new Wrangler in both two and four door variants. But the buzz of the show focused on the group's concepts. There was the '70s, retro-in-every-way Challenger muscle car concept, and the Imperial, Chrysler's idea of what an ultra-luxury sedan from the winged American brand might be. The two concepts brought attention to Chrysler group, the former was admired by muscle car and Mopar enthusiasts, while the Imperial created new insight into Chrysler's vision for a continued climb up-market… not to mention a fair bit of controversy over its design thanks to Rolls-Royce Phantom-inspired styling, rear-hinged doors, and glitzy exterior.Since that time, Chrysler has officially announced the production of the Challenger, and that assembly of the car will commence in Canada for 2008. But the sporty two-door isn't the only vehicle that Chrysler Group is green-lighting. Apparently, the Imperial
2006 Chrysler Imperial Concept
Imperial would stir up the full-size sedan market, namely the Lincoln Town Car and the Caddy DTS. (Photo: Chrysler)
is to be built as well, though Chrysler's having a bit of difficulty getting the gears moving on this project.

According to Ward's Auto World, the workers at the Brampton, Ontario, Canada assembly facility that produces the LX-chassis cars (300, Magnum, Charger) were offered a proposal that would secure them the contract to build a vehicle internally dubbed “Product X”, keeping the plant on a three-shift schedule in exchange for a wage cut of $115 per week. Sources told Ward's that the identity of "Product X" is the Chrysler Imperial. Despite the endorsement of the Canadian Auto Worker's union leaders, the workers of the plant voted against the vehicle with overwhelming disapproval.

Bob Chernicki, assistant to Buzz Hargrove, the Canadian Auto Worker's President, said "Is it unfortunate? You'd better
2006 Chrysler Imperial Concept
Nevertheless, Chrysler seems positive that the unions won't affect production schedules up 'til 2009. (Photo: Chrysler)
believe it... Is it the wrong way to do it? Absolutely. We are disappointed in the decision. But hey, that's democracy. And that's what works in our union." On the flip side of the coin, a spokesman from Chrysler said the union's vote would have no affect on the group's production plans through 2009.

What does this mean for Chrysler Group? Keeping in mind that the Imperial would ride on the next-generation large-car platform (LY), Chrysler's only realistic solution is to return to the bargaining table or drop the car outright. Besides the Magna-Steyr owned Graz, Austria plant that builds European market and right-hand drive 300s, the only other facility in the world that produces LX cars is Brampton. For a car that's predicted to sell in smaller volumes than any of the LX cars, it simply wouldn't make sense to do it any other way. However, if all goes according to plan, the Chrysler Imperial should be launched in three years.

Interestingly, the Detroit Free Press reported on Monday that Chrysler's Brampton union workers have voted on a different matter, the subject of pay (different to the one mentioned above). They've agreed to outsource some of the janitorial jobs and accept a cutback in "premium pay", a generous 40 minute per day "break", where workers are paid, but not working. Annually, this costs Chrysler $5,000 per hourly worker.
Copyright © Canadian Auto Press

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