Transition to Fiat platform should boost economy

Ryan Beene from Crain’s Detroit Business has an article about the economic impact of having to change over Chrysler factories in the state to build cars based on the Fiat platform, which should be a boost to local companies that do such work:

Chrysler Group LLC, the Chrysler, Fiat, UAW and government mash-up crafted by the hands of the Obama administration and New York’s bankruptcy court, is likely to spend a hefty chunk of change to start building Fiat-based cars at Chrysler plants.

The plan is to build five cars using Fiat platforms by 2012, and it stands to reason that a great deal will have to be done to prep the Chrysler factories slated to build these cars, which could mean big-bucks for firms that provide the robotics, assembly equipment, tooling and computer sequencing products that make assembly lines work.

When automobile factories are shut down and retooled for the production of a different model, the work often takes several months and often requires the hiring of hundreds of iron workers, millwrights, electricians, fitters and machinists. The robotics will also require the hiring of programmers and trainers. The typical cost of turning a factory over is between $300 and $500 million, which is a significant boost to the local economy.