Chrysler Group LLC has received approval for $10 million in tax credits and $2.85 million in grants from the State of Ohio. The funds are for work force training and new equipment for the proposed expansion of the Toledo Assembly Complex (TAC) and Toledo Machining Plant in Perrysburg Township.

Ohio Gov. John Kasich announced the tax credits and grants for Chrysler’s local expansion projects once they were approved by the Ohio Department of Development (ODOD) on Aug. 29. The incentives support Chrysler’s potential investment of $365 million in the TAC facilities and $72 million in the machining plant.

“These incentives are part of my administration’s efforts to help create needed jobs in the Toledo area,” Kasich said. “Chrysler is a major asset to Toledo and Ohio and we’re doing everything we can to make the case that Ohio is the right place for the company to continue to invest and grow.”

Kasich met with representatives of Chrysler, Ford and General Motors in Detroit on Aug. 23 to discuss investments and the continued presence of the companies in Ohio.

Chrysler appreciates the support from the State of Ohio in approving these incentives, according to Jodi Tinson, a spokesperson for the Chrysler Group.

The ODOD approved the tax credits and grants to help create 1,100 new jobs and retain 1,700 existing jobs at the TAC.

The UAW union and local officials have been expecting the financial assistance from the State of Ohio since Chrysler applied for tax abatements from the City of Toledo, Toledo Public Schools, and Washington Local Schools.

UAW Local 12 President Bruce Baumhower reported earlier that the union expected the state’s announcement of incentives for expansion of the TAC by Chrysler.

“We’re glad they approved it. It’s another step completed in the process. You’ve got to have business, labor and government working together to get it done. We look forward to a big announcement by Chrysler soon,” Baumhower said.

Chrysler already has approval of the tax abatement by the local school districts involved, an EPA air permit and state incentives for the project. Any incentives to come from the City of Toledo are to be determined.

City Council is scheduled to hold a public hearing on the proposed incentives from the city for the Chrysler TAC at 3 p.m. Sept. 7 in the Council chambers at One Government Center.

The ODOD approved $4.1 million in state incentives for the Toledo Machining Plant that includes more than $3.3 million in tax credits and $850,000 in grants for worker training and equipment at that facility.

Chrysler confirmed plans Aug. 23 to invest $72 million in the machining plant, which would help retain 640 jobs there to produce new generation front- and rear-wheel drive torque converters and steering columns. Chrysler’s plans are subject to completion of incentive agreements with the State of Ohio.

“We welcome this investment in Toledo Machining as it is an acknowledgement of the high-quality components that have been produced by our skilled work force for many years,” said Scott Garberding, senior vice president and head of manufacturing for Chrysler. “We are appreciative of the support we have received from the State of Ohio in providing the incentives necessary to make this investment possible. Being able to bring new technology to this facility secures its long-term future.”

The Toledo Machining Plant produces steering columns for the TAC and assembly plants in Michigan, Illinois, Ontario, Canada, Mexico and Venezuela, according to Chrysler.

The plant also produces torque converters for automatic transmissions produced in plants located in Indiana, Michigan and England.

The collaborative efforts between Chrysler, the State of Ohio and local governments support more than 3,400 new or existing jobs for people in Northwest Ohio, according to multiple sources.

Since June 2009, the Chrysler Group has invested nearly $3.2 billion in its U.S. facilities and has made significant progress toward building a profitable enterprise, including a net profit of $116 million in the first quarter of 2011.

Tags: Bruce Baumhower, Chrysler Group, Jeep, John Kasich, Local 12, Perrysburg, UAW

This entry was posted on Thursday, September 1st, 2011 at 2:41 pm and is filed under Development, Featured, Toledo Business Link, Wheels.
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Vice President Joe Biden is scheduled to visit the Chrysler Group’s Toledo Supplier Park on Aug. 23.

The White House confirmed that the vice president will visit the Chrysler Supplier Park complex in Toledo on Aug. 23, reported FOX Toledo News, media partner of Toledo Free Press.

Biden is expected to discuss how suppliers have played a pivotal role in Chrysler’s recovery, according to a Chrysler Group spokesperson who confirmed the vice president’s visit. A Chrysler official at the Toledo Supplier Park said Biden will take a short tour of the facility and make some comments but no additional details are available.

Biden

The automaker returned to profitability in the second quarter of 2010, which ended June 30.

The Chrysler Group reported an operating profit of $183 million in the second quarter and positive cash flow of $474 million strengthening its cash position to $7.8 billion. Net revenues increased 8.2 percent to $10.5 billion in the second quarter from $9.7 billion in the first quarter, according to the company.

The Toledo Supplier Park was the first North American auto plant to have three major vehicle-building operations managed by suppliers, according to Chrysler. The plant, which employs about 2,000 workers, is located on the same site in North Toledo as Chrysler’s North Assembly Plant where the Jeep Liberty and Dodge Nitro are built.

The supplier complex opened in 2005 as a joint partnership of Chrysler, KUKA Systems Corp. North America, Magna International Inc. and Hyundai-owned Ohio Module Manufacturing Co. (OMMC). The plant includes the body shop operated by KUKA, paint shop by Magna and chassis assembly by OMMC with Chrysler handling assembly of the major components for the Jeep Wrangler.

Biden’s trip is a follow-up to President Barack Obama’s visit to Chrysler and General Motors assembly plants in Detroit last month.

FOX Toledo News reported that Biden will also visit Willard & Kelsey Solar Group in Perrysburg where he appeared on his last visit to the area June 23, 2009. The company was founded in 2007 to produce solar panels using silicon thin-film photovoltaic technology.

Tags: Chrysler Group, Jeep, Joe Biden, Obama

This entry was posted on Wednesday, August 18th, 2010 at 11:12 am and is filed under Community, Wheels.
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