The year was 1987. Chrysler just purchased American Motors Company. The city of Kenosha didn't know what was next. Was the big Detroit automaker going to continue operations in Kenosha, or were they going to be moved to the Motor City. Thousands of workers had no idea if they were going to be making cars, or looking for new work.
Fast forward two decades later. Same picture. This time Chrysler was being sold. Some of the same people from 1987 had to ask the same question, what's next?
Unlike the years after the AMC buyout, the new owners, the state, and electric utilities are now investing in Kenosha. How the times have changed.
Chrysler made the decision to move everything except the production of hte 4.0L "straight six" engine from Kenosha. The city didn't know what was next. It had been building cars for more than 50 years.
I remember the last smoke stack from the lakefront assembly plant come crumbling down in 1988. I remember the toxic land that sat for more than a decade untouched. Downtown Kenosha for 15 years was dead. The city had no ideas of what to do with the former lakefront site.
Now, in 2007, the next chapter of Kenosha's automotive history isn't the shutting down of the Chrysler Kenosha Engine Plant as many workers feared. Instead of looking for new jobs, like so many did in in 1987, now they will he looking for new opportunities in the expanded and rennovated Kenosha Engine Plant.
Chrysler Group (DCX) announced today it will spend $450 million to retool its Kenosha engine plant, with the aid of an additional $16.8 million in incentives from the state, city, county and private entities.
The retooled facility is expected to begin operations in January 2011, and could produce 400,000 engines at full capacity.
The investment means that Kenosha's 820-employee work force will be part of the "powertrain offensive" that the Auburn Hills, Mich., automaker says is a key component of its restructuring plan.
"This retooling investment will allow us to build an entirely new, globally competitive family of V-6 engines," said Richard Chow-Wah, Chrysler Group vice president of powertrain manufacturing.
The joint incentive package includes a $7 million loan from the state Department of Commerce, $3 million in training assistance grants, a $2 million loan from the City of Kenosha, $1 million from Kenosha County, and $3.8 million in assistance from American Transmission Co. and We Energies to upgrade electrical service to the plant.
"I am pleased the state could be a good partner with Chrysler as they retool their Kenosha plant to meet the needs of a growing economy," Gov. Jim Doyle said.
I have to give Gov. Jim Doyle credit for this Granted, I think the UAW had some influence in getting him to pony up for the millions of dollars, in return for the hit pieces paid fro by the union, and the swarms of campaign volunteers last November.
But this is good for Kenosha, no matter which way you slice it. The city won't have to redevelop a toxic factory site like 20 years ago. They won't have to TIF the entire area to pay for it. The $2 million the city paidas part of this pacakge will go a along way down the road.
It could be the best investment in Kenosha since the Spot drive in was opened.
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