February 21, 2010

Chrysler agrees to buy Detroit-area plant from predecessor for $20M, keep open through 2012

The Canadian Press
Chrysler Group LLC plans to keep its Sterling Heights, Mich., assembly plant open through 2012, preserving 1,200 jobs building the Sebring and Dodge Avenger midsize cars, the automaker said Friday.

The plant near Detroit had been set to close in 2011. But Chrysler agreed to acquire it for $20 million from the company that has managed the automaker's remaining assets since its emergence from bankruptcy protection last year.

"There is no commitment on the future... beyond 2012," Chrysler said in a statement.

In court documents filed Thursday, Old Carco LLC - the so-called old Chrysler - requested an order allowing it to sell the plant to Chrysler Group. The Italian automaker Fiat SpA owns a partial stake in Chrysler Group.


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