Here’s a new twist in the Chrysler bankruptcy that may provide a bit of good news for the Michigan economy. The newly restructured company is working on a plan to buy back a plant in metro Detroit from its own bankrupt self and put the workers from the plant back on the job. The Detroit Free Press reports:
Chrysler is negotiating to buy the Sterling Heights Assembly Plant from its bankruptcy estate and save about 1,200 jobs that were expected to be eliminated at the end of 2010.
The Sterling Heights City Council voted last month to extend a $7.4-million property tax abatement to encourage Chrysler to keep the plant open as well as a nearby center where parts are organized before being taken to the production line.
The extension is contingent on Chrysler reaching a deal with the bankruptcy court and the administrators of Old CarCo, the parts of old Chrysler that were not part of the taxpayer-funded restructuring.
With a focus on midsized cars a central part of Chrysler’s turnaround plan, the Sterling Heights plant would be used to build Chrysler Sebrings and Dodge Avengers.