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Detroit Gets New Plant for Making Jeep Suspensions

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On: Mon, Jun 7, 2010 at 9:49AM | By: Michael Jon Lazar


Detroit Gets New Plant for Making Jeep Suspensions

Hyundai Mobis has announced that they are taking over a parts manufacturing plant in Detroit to build suspensions for the very popular car line of Jeep Grand Cherokees, which are assembled currently at the Chrysler Group’s Jefferson North assembly plant. The plant will be manufacturing the front and the rear suspensions and modules for all new Grand Cherokees that will be made in the US over the years to come. The UAW (United Auto Workers Union) executive vice president, Bob King, is simply ecstatic about more jobs coming back to a city that has been plagued by the shuttering of plants since the Big Three automaker fallout and car buying recession began a few years back.

He was quoted in a recent interview in Auto News, stating, “When you do it in an urban environment, we really appreciate that social commitment.” By urban environment, King is truly emphasizing that this will put some life back into the city which currently sprawls with empty auto plants that used to crank out thousands of cars per day. But after the calamity of the auto recession struck, it has been nearly turned into a car-making ghost town.

According to the report by Auto News, “The factory, which received $23 million in new investment, will add a second shift in July, Joon-hyung Lee, COO in charge of Hyundai Mobis’ global business division, said during ceremonies at the plant.”

Hyundai Mobis, the Korean supplier of the parts that will be used to make these suspension modules, has recently taken over the plant. This was after the departure of ArvinMeritor Inc.; the company has ceased production of lightweight vehicles and no longer requires the use of the plant for producing parts. This takeover is expected to start immediately—as Hyundai Mobis plans on adding shifts and hiring new employees starting in July of this year.

The company has no looming financial woes either, and this is great news for Detroit—a city that was once the auto-making capital of the US and the world.

The report by Auto News really shows the real numbers on how large the part maker is: “Hyundai Mobis ranks No. 20 on the Automotive News list of the top 150 suppliers to North America with parts sales to automakers in North America of an estimated $1.44 billion in fiscal 2009.”

If you ask me, this is directly in par with an ever-growing, and very awesome, trend that we are seeing all over the world with cars, suppliers, sales, dealerships, and the whole shebang. It represents good things: More jobs, lower prices on cars that are being more and more domestically produced in the US. It also represents the fact that, indeed, one can really keep a keen eye open as we all watch the auto industry rebound. With sales on the rise and more people buying cars in the US and worldwide, one might think that it is safe to finally state that The Auto Recession is Over!


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