Possible Third Shift Could be added to DaimlerChryslers Brampton, Ontario Plant

Chrysler 300 Europe Bound in Plan to Boost Overseas Sales

While some automakers, such as Ford and Mitsubishi, are cutting back production, Chrysler is once again considering upping the volume of new LX vehicles being built at its Brampton, Ontario plant.

DaimlerChrysler Canada has already increased production from one shift to two, but now in order to keep up with consumer demand a third shift is being considered.

While adding an additional shift might sound simple on the surface, it requires a great deal of forethought. The third shift means the plant would not have much, if any down time. Also, additional auto workers would need to be hired and trained. All could affect the quality of the end product, something the domestic automaker promises to rival Toyota and Honda in coming years.

As reported in a Reuters news story, DaimlerChrysler VP of human resources M.J. Gendregske sent Canadian Auto Workers (CAW) union head Buzz Hargrove a letter on September 10th regarding the "the feasibility of a competitive third shift...", which without doubt was good news to for union.

Hargrove commented, "Our union is committed to working with DaimlerChrysler to resolve the issues which have been identified." He continued, "This is a great opportunity to create and maintain good jobs for our members and the community. Its important that government plays a role in supporting training and technology advancements needed to ensure a third shift at the Brampton plant."

The CAW boss added that Local 1285 members, of whom about 3,000 are at the LX facility, have worked hard to produce high quality vehicles, speaking of the 300 Series Chrysler and Dodge Magnum sport wagon.

The quality of the new cars is so good actually, that Dieter Zetsche, CEO of the Chrysler Group, announced official plans to sell the 300 internationally showrooms at a business roundtable in Calgary, Alberta last Friday. This move will combine with others to double its overseas sales.

Zetsche added that left- and right-hand-drive versions of the large 300 would become available in Europe and elsewhere starting next year. The automaker has already announced plans to sell a 300 sport wagon in Europe, a model which will feature a turbodiesel variant. The diesel powerplant is also expected to be offered in the sedan.

At the other end of the efficiency spectrum, a high-performance version of the car will also be available overseas, said Zetsche. This will most likely be the 300C SRT8 that was introduced last month, sporting a revised HEMI-V8 with 6.1-liters of displacement and 426 horsepower.

It might come as a surprise to some, but Chrysler currently sells vehicles in more than 125 countries and has plans to increase volumes to approximately 180,000 outside North America this year, or so said Zetsche.

Zetsche added that the Chrysler Groups target was to increase European market share from its current 0.7 percent level to 1 percent within three years. The domestic automaker has plans for a total European market share of 1.4 percent in five years, which will be spurred on by the introduction of Dodge. The Viper, for instance, was sold in Europe under the Chrysler nameplate until earlier this year.

Zetsche continued that by 2007 Chrysler Group will double the available models abroad to eighteen.

While the domestic automakers plans might seem ambitious to those familiar with the European market, the distinctive styling, performance bias and much improved quality of its cars, at least make the potential for European success feasible.

Its also important to note that Chrysler Group has been profitable in overseas markets so far this year, or so said Zetsche recently in an interview with German daily Financial Times Deutschland.

"This year weve been profitable so far in our international business," said Zetsche. "I am not aware that Chrysler was ever profitable here before."

Previously, in an unrelated story by business daily Handelsblatt, Zetsche stated Chrysler plans to realize a 5 percent profit margin in five years. Whats more, he also said that the automakers goal was to produce 1 million additional cars per annum by 2012, over and above what the automaker built in 2002.

As previously mentioned, Chrysler Group is playing catch-up to Ford and General Motors, which have been deeply embedded in the European market for decades, Ford with its blue oval badged brand, and luxury divisions Jaguar, Land Rover, Volvo and Aston Martin originating in European/Scandinavian countries. GM owns the Adam Opel nameplate, very strong in Europe, plus its Saab division is relatively popular. The domestic automaker has made strong inroads with Cadillac and Chevrolet, the latter best known for its Corvette sports car.

Chrysler, on the other hand, only started selling cars outside of North America in 1996. Zetsche reiterated that his auto group would bolster its European presence with the Dodge brand in 2006.

"The actual launch of the Dodge brand in Europe will occur in principle in two years, with several vehicles that are volume products," he stated.

Clearly Chrysler Group is on a mission to increase its global presence.