Suppliers Will Play a Major Role in Whether Jeep Wrangler Production Stays in Toledo

It’s still unclear whether or not Jeep will continue to build the Wrangler in Toledo, Ohio when the next generation of it comes out in 2017. However, as time goes on, we get a clearer picture of the factors that will influence the company’s ultimate decision.

The Detroit News states Fiat Chrysler Automobiles will announce by June whether or not production of Jeep’s legendary off-roader will stay in Toledo. Before that major decision, Jeep has to make smaller ones about a number of important things. One of them is what to do with the current Wrangler assembly system.

Right now, three companies build the Wrangler in the Toledo Supplier Park housed within the Toledo Assembly Complex. Mobis North America assembles the ladder frames and puts tires on rims. Kuka Systems makes the bodies. The Fiat Chrysler Paint Shop sprays them with paint, then Fiat Chrysler performs final assembly of the bodies and chassis.

Such a setup was advantageous to Chrysler back in 2006. At that time, it was part of Daimler and the supplier park enabled it to avoid putting hundreds of millions of dollars into a new plant for the Wrangler.

Provided Jeep decides to keep the manufacturing of that vehicle in Toledo, it will have to determine what to do regarding Mobis and Kuka. If it chooses to take control of those companies’ functions, it will have to deal with the local leadership of the United Auto Workers, which will negotiate with FCA in an attempt to keep UAW members employed in the transition from one of the two suppliers to Jeep. A similar process occurred when Chrysler took the reigns of the Wrangler paint shop from Magna International Inc. a few years ago.

Approximately 6,000 employees directly work in the TAC. Through salaries and wages, they contribute roughly $350 million to the Toledo economy. According to The Detroit News, “City officials estimate another 12,000-18,000 jobs and hundreds of millions of dollars are created as a result of the facility as well.”

Even if Jeep replaces the manufacturing of the Wrangler with the production of another vehicle, that means thousands of people will be financially dependent on the success of a potentially less popular model than the Wrangler, something that’s proven to be a continually good seller.

Meanwhile, FCA will continue to mull over an incentive plan to keep the Wrangler in Toledo drawn up by city and state officials. The specifics of it could possibly include hundreds of millions of dollars in local and state tax credits and incentives for FCA to spread out or build a plant on about 100 Toledo-owned acres next to the TAC.

Chime in with your thoughts on the forum. >>

via [The Detroit News]

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Derek Shiekhi

Derek Shiekhi's father raised him on cars. As a boy, Derek accompanied his dad as he bought classics such as post-WWII GM trucks and early Ford Mustang convertibles.

After loving cars for years and getting a bachelor's degree in Business Management, Derek decided to get an associate degree in journalism. His networking put him in contact with the editor of the Austin-American Statesman newspaper, who hired him to write freelance about automotive culture and events in Austin, Texas in 2013. One particular story led to him getting a certificate for learning the foundations of road racing.

While watching TV with his parents one fateful evening, he saw a commercial that changed his life. In it, Jeep touted the Wrangler as the Texas Auto Writers Association's "SUV of Texas." Derek knew he had to join the organization if he was going to advance as an automotive writer. He joined the Texas Auto Writers Association (TAWA) in 2014 and was fortunate to meet several nice people who connected him to the representatives of several automakers and the people who could give him access to press vehicles (the first one he ever got the keys to was a Lexus LX 570). He's now a regular at TAWA's two main events: the Texas Auto Roundup in the spring and the Texas Truck Rodeo in the fall.

Over the past several years, Derek has learned how to drive off-road in various four-wheel-drive SUVs (he even camped out for two nights in a Land Rover), and driven around various tracks in hot hatches, muscle cars, and exotics. Several of his pieces, including his article about the 2015 Ford F-150 being crowned TAWA's 2014 "Truck of Texas" and his review of the Alfa Romeo 4C Spider, have won awards in TAWA's annual Excellence in Craft Competition. Last year, his JK Forum profile of Wagonmaster, a business that restores Jeep Wagoneers, won prizes in TAWA’s signature writing contest and its pickup- and SUV-focused Texas Truck Invitational.

In addition to writing for a variety of Internet Brands sites, including JK Forum, H-D Forums, The Mustang Source, Mustang Forums, LS1Tech, HondaTech, Jaguar Forums, YotaTech, and Ford Truck Enthusiasts. Derek also started There Will Be Cars on Instagram, Facebook, and YouTube.

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