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Obama cites progress; Chrysler to add jobs

Jul 31, 2010 — Detroit Free Press

Greg Gardner and Kathleen Gray

Jul. 31, 2010 (McClatchy-Tribune Regional News delivered by Newstex) -- He drove the Volt, listened to General Motors and Chrysler workers describe their jobs and reminded labor and management that a revived industry has recaptured only a fraction of the jobs it lost during the downturn.

Still, President Barack Obama celebrated the modest momentum that has led to the industry recapturing 16% of the 334,000 jobs that disappeared in the two years leading up to the bankruptcies of GM and Chrysler.

And he told politically friendly crowds that it could have been much worse. Instead, Obama announced Chrysler would add 900 jobs early next year at its Sterling Heights Assembly Plant, which previously was expected to close at the end of 2012.

"A lot of people were skeptical," Obama said Friday of the auto rescue, during a speech at Chrysler's Jefferson North Assembly Plant in Detroit. "There were many who said we should just let the market take its course. ... But I had confidence in you."

Sywanda Thomas, 44, of Detroit could barely contain herself, climbing up a metal barrier to see Obama. "I've been part-time for 11 years, and I just started full-time on May 3," she said. "I'm truly happy to be working."

"Last year, we didn't know if we would even have a plant," added Cynthia Holland, president of UAW Local 7. "Today we have a second shift with 1,100" workers.

'I had confidence in you'

Chrysler's decision to hire 900 more people next year in Sterling Heights nearly upstaged President Barack Obama's whirlwind visit celebrating progress made in the year since Chrysler's and General Motors' bankruptcy makeovers.

So Chrysler CEO Sergio Marchionne graciously let the president announce the news in front of nearly 1,500 workers and dignitaries at the company's Jefferson North factory.

"We are ecstatic," said Rebecca Suell, a quality engineer at the Sterling Heights assembly plant. "I was surprised."

At General Motors' Detroit-Hamtramck factory, plant manager Teri Quigley led the president on a tour of the line.

Followed closely by GM Chairman and CEO Ed Whitacre and White House press secretary Robert Gibbs, the group stopped and chatted with dozens of workers who build the Cadillac DTS, Buick Lucerne and preliminary versions of the 2011 Chevrolet Volt electric car.

Asked what he talked about, Quigley said, "Mostly he was asking about what is the difference in the business climate for us relative to a year ago."

The president contrasted the industry's state today with the near-death experience of last summer.

"In the 12 months before I took office, the American auto industry lost hundreds of thousands of jobs. Sales plunged 40%. The industry looked like it was going over a cliff," he said.

In the year since Chrysler and GM exited bankruptcy, auto industry employment has increased by 55,000 jobs, according to the Bureau of Labor Statistics.

That's less than one-sixth the 334,000 industry jobs lost between mid-2008 and mid-2009.

Chrysler's commitment to add a second shift in early 2011 at Sterling Heights provides evidence of a sustainable recovery.

It also stabilizes a stomach-churning roller coaster ride for the Van Dyke Avenue factory's 1,200 workers.

As recently as last fall, Chrysler planned to shutter it at the end of this year.

Earlier this year, the plant's future was extended to the end of 2012, but no longer. Friday, that changed.

The plant, one of Chrysler's oldest, needs a new or modernized paint shop. There were fears that the Fiat-based midsize sedans Chrysler will launch in 2013 might be built in Mexico or Canada.

But Sterling Heights City Manager Mark Vanderpool led a regional task force that worked with federal and state leaders to plead the case for committing to the factory's future. Members even met with the Italian consulate.

"We've had ongoing discussions with Chrysler every week for the last year," said Vanderpool. "Chrysler will be considering some investment for the facility, and I'm sure the paint shop will be a component of that."

At GM's Detroit-Hamtramck factory, workers greeted the president with enthusiasm and gratitude. In addition to the taxpayer assistance that supported GM's and Chrysler's restructurings, the U.S. Department of Energy has provided $2.4 billion in grants that directly support much of the battery technology featured in the 2011 Chevrolet Volt.

"We're just glad he did what he did," said Stephanie Clack, who works on the Volt team. "We were worth it, and we won't let him down."

Contact GREG GARDNER: 313-222-8762 or