Chrysler to Spend $281 Million to Upgrade Jefferson North; Resumes Windsor Minivan Output

Chrysler LLC reportedly plans to spend about $281 million to upgrade its Jefferson North Assembly Plant in Detroit.

The investment in equipment and technology is targeted at producing the next-generation Jeep Grand Cherokee, plus two new additional models, according to The Detroit News. The move will generate about 419 jobs and be completed in June 2010.

Meanwhile, Chrysler is resuming production at its minivan assembly site in Windsor, ON, Canada, after a key supplier settles a labor strike.

The work stoppage by Canadian Auto Workers union members at a nearby TRW Automotive Holdings Corp. site halted production Feb. 26 at the Chrysler plant, home to the auto maker’s bread-and-butter Chrysler Town & Country and Dodge Grand Caravan.

The TRW facility supplies suspension modules for the popular Chrysler Town & Country and Dodge Grand Caravan.

The dispute centered on wages, and TRW workers now will see their hourly rate jump to $17 from $11 by 2011.

Meanwhile, Chrysler extends through March 17 its interim supply agreement with Plastech Engineered Products Inc., as the auto maker seeks to reclaim its tooling from the bankrupt company.

Chrysler tore up its agreement last month with Plastech after the supplier was implicated in a series of quality and delivery setbacks.

But before the auto maker could reclaim its tooling, Plastech filed for bankruptcy, triggering an operational freeze that was upheld by a Detroit bankruptcy court. Chrysler is challenging the ruling.