Jeep Wrangler decision could come down to UAW talks

Detroit — Jeep Wrangler production is anticipated to be a part of the 2015 contract negotiations between Fiat Chrysler Automobiles NV and the United Auto Workers.

After nine months of speculation about when a decision could come and Toledo officials orchestrating an aggressive land and incentive package to keep production in that city, the decision could arise as part of the collective bargaining agreements between the automaker and union.

Fiat Chrysler CEO Sergio Marchionne, who in January said a decision could come by June, now hopes to make a decision by the end of summer, which coincides with the current four-year contract expiring Sept. 14. Marchionne said he believes Toledo "has done everything it can" to keep the SUV, but hurdles remain.

"They can't bridge the whole gap," Marchionne said without elaborating on how that "gap" could be bridged. "Bridging the gap" was the UAW's resounding message heading into negotiations.

UAW President Dennis Williams separately told reporters at the event that "every product, every plant will be a part of these talks." Marchionne said Wrangler production is a discussion he would have with Williams before making a final decision.

In October, Marchionne caused a panic in Ohio by saying production of the next-generation Jeep Wrangler may move out of Toledo because of significant retooling costs to provide possible enhancements such as an aluminum body. Marchionne has since said the next-generation Wrangler will feature aluminum, but not be all-aluminum.

Marchionne reiterated he will do "everything I can to keep (Jeep Wrangler) in Toledo." He said the only reason a decision hasn't been made "is because the car is doing really well."

"If I'm down for 60 days, what I lose is more than I make in a year, multiple years," he said during a ceremonial handshake event to officially start negotiations with the union in Detroit. "We're still struggling to get that done without taking the plant down and introducing a new Wrangler."

A new plant seems to be the best option, as Marchionne has said he cannot let that plant shut down. But development and production of a new plant could cost billions. Fiat Chrysler invested about $1 billion into its Sterling Heights Assembly plant in recent years for updates, retooling and building new state-of-the-art body and paint shops.

Marchionne has promised a new vehicle would take the Wrangler's place without any jobs lost, but suppliers aren't guaranteed to keep contracts and local officials argue the Wrangler is the most stable vehicle in the automaker's lineup.

Toledo Assembly Complex, where the Wrangler is produced, directly employs about 6,000 and pumps an estimated $350 million into the local economy through wages and salaries. City officials estimate another 12,000-18,000 jobs and hundreds of millions of dollars are created as a result of the facility as well.

mwayland@detroitnews.com

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