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Detroit gets ready to train up workers for coming FCA Jeep job boom

DETROIT — Fiat Chrysler Automobiles this week announced a $4.5 billion investment that would bring 6,500 new manufacturing jobs to Detroit and its suburbs and, nearly two years before the first new vehicles will even roll off the line, the city already is taking steps to ensure it can provide enough workers with the needed skills. Detroit's economy was once dominated by automotive manufacturing, but since the industry's gradual migration from the metro area it has suffered among the highest poverty and unemployment rates in the country. Not long ago, Detroit was struggling to provide basic services, culminating in bankruptcy in 2013. Providing job training then would have been a tall order. But in its recovery, the city has overhauled its training programs and slowly built a track record for preparing people for specific jobs. "We're not starting from scratch," Jeff Donofrio, the city's executive director of workforce development, said Wednesday, a day after the Italian-American automaker announced its plan . "We want to make sure we're prepared for all the ... jobs that will come to the city as a result of the investments." The city works with two high schools, a community college and a workforce development organization, in partnerships with the auto union and companies, to tailor training programs for positions in manufacturing, construction, information technology and health care. Detroit worked closely with global auto parts supplier Flex-N-Gate to ensure Detroiters were handed jobs when the company last year opened a plant in what officials described as the largest investment in the city in two decades. The city and company developed customized training with the nonprofit Focus: Hope, which prioritizes workforce development and education. "About 250 individuals went through that training and a vast majority were hired by Flex-N-Gate," Donofrio said. With tax breaks and land acquisitions still to be hammered out, Fiat Chrysler's specific workforce needs have yet to be revealed. But Donofrio insists that the city has a growing force of eligible workers: Detroit last year enrolled about 2,500 people in training leading to a credential for a specific job, up from about 700 two years earlier. Some prospective FCA jobs could be offered to laid-off Fiat Chrysler workers or those already working for the company on a temporary basis, and United Auto Workers officials say many of them are already in Detroit.

FCA and PSA sign merger agreement

Confirming an earlier rumor, PSA Group and Fiat-Chrysler Automobiles (FCA) signed a binding merger agreement to create the world's fourth-largest automaker. The partners hope to leverage the benefits of economies of scale as they develop new technologies and expand their global presence. The announcement ends FCA's years-long search for a partner, which nearly ended earlier in 2019 when it came close to merging with Renault, PSA's rival. It brings Fiat, Chrysler, Dodge, Ram, Jeep, Alfa Romeo, Maserati, Lancia, Peugeot, Citroen, DS, and Opel/Vauxhall under the same roof. That's a huge portfolio of brands that often overlap, but executives pledged to keep them all open, as well as all their respective factories as a result of the transaction. They're committed to making this big family of automakers work by building on each one's strengths, whether they're technical or regional. FCA and PSA jointly predicted they'll sell about 8.7 million cars annually around the globe, while posting an ˆ11 billion (about $12.2 million) profit. North America, a strong market for FCA, will provide 43% of its revenues, and 46% will be generated in Europe, where Peugeot's brands are doing better than ever. Together, they plan to achieve ˆ3.7 billion (about $4.1 million) in annual run-rate synergies. They'll notably have the purchasing power to negotiate a better price with suppliers, and they'll merge their research and development efforts where it makes sense to do so. Over two thirds of the group's annual volume will be built on two shared platforms. One will underpin about three million small cars annually, and the other will serve as the foundation for approximately three million compact and mid-sized cars. Details about these architectures haven't been made public yet, but a quick look at both companies' product portfolios reveals the small car will very likely come from Peugeot. Recent additions to its range, like the second-generation 208, are built on a new architecture named Common Modular Platform (CMP) developed with electric powertrains in mind. Meanwhile, Fiat is still making the cheeky 500 on an evolution of the platform found under the second-generation Panda released in 2003. The bigger architecture could come from FCA, however. The group's brands will share engines, transmissions, electric powertrains, infotainment systems, various sensors used to power electronic driving aids, and other components like wiring looms, but each one will retain its own identity.

How fracking is causing Chrysler minivans to sit on Detroit's riverfront

It's fascinating the way that one change to a complex system can have all sorts of unintended consequences. For instance, there are hundreds of new Chrysler Town and County and Dodge Grand Caravan minivans built in Windsor, Ontario, sitting in lots on the Detroit waterfront because of the energy boom in the Bakken oil field in the northern US and parts of Canada.
The huge amount of crude oil coming from these sites mostly use freight trains for transport, and that supply boom has resulted in a shortage of railcars to carry other goods. According to The Windsor Star, North American crude oil transport by train has gone from 9,500 carloads in 2008 to 434,032 carloads in 2013. Making matters worse, some North American rail infrastructure is still damaged because of this year's harsh winter, and that's slowing things down even further.
Chrysler admits to The Star that it has had some delivery delays due to the freight train shortage. In the meantime, it's using more trucks to deliver its vehicles. Trucking is a far less economical solution, partially because a train can carry so many more units at one time, but alternatives are slim. The Windsor plant alone has a deal for 33 trucks to distribute the minivans around Canada and the Midwestern US.