Review Car

Chrysler Investment Plans

Chrysler has made plans to invest around $843 million into Kokomo Industries, a plant in Indiana that would use the funds to build a front wheel drive automatic transmission that Chrysler would use in future models. However, the Kokomo City Council must still approve the decision, in which they have until December 13th to vote yes or no to the investment. 

There are many reasons why people are wanting the investment to go through. The most beneficial reason to the economy is that it would keep around 2,250 jobs at the plant, which could be a huge boost for the local economy. In addition, it would be the largest investment into the economy in years, and would be one that people would greatly appreciate. 

If the investment that Chrysler has given goes through, that would increase the investment that Chrysler has made into US facilities to around $3 billion since June 2009. In addition, Chrysler is looking to make investments into their Sterling Heights Michigan plant at the tune of about one billion dollars, and they plan to make investments in other plants around the Michigan area. In addition, they are planning to offer many new jobs at these Michigan plants that will spur on the economy. 

Amid this news, President Obama also visited the plant. Mainly to confirm that Chrysler was putting to good use the opportunity to turn their business around and was benefiting from the government stepping in and bailing the automaker out when they needed it. In addition, the President wanted to prove that the decision was helping to stimulate the economy and increase jobs. 

Since Chrysler began losing money, the economy in Indiana suffered greatly as Chrysler was forced to shut down factories and dismiss many workers, leaving many workers without work and losing valuable possessions. 

Overall, Chrysler is showing the world that the bail out that they were given is being put to good use and that they have begun to learn from their mistakes. However, the public still seems to be on the fence as to whether the bail out was good for Chrysler or not.