By Adam Allington, KWMU
St. Louis, MO – Chrysler's two assembly plants in Fenton won't be affected - at least in the short term - by Monday's announcement that the auto-maker has been purchased by a New York-based private equity firm.
Fenton Mayor Dennis Hancock says Chrysler officials have reassured him that the two plants that make trucks and minivans are not in danger of closing.
"One of the things that I think speaks well for the long term viability of the plants in Fenton is the flexible manufacturing model that's being put in place," Hancock said Monday. "That will allow for the manufacture of multiple vehicles in that plant."
Fenton's south plant is shut down for the next three months to undergo re-tooling.
In February, Chrysler announced measures aimed at returning the company to profitability by 2008. The company says there are no plans to divert from that renovation project at this time.
Juli Niemann, a stock analyst for Smith-Moore and Company, says Cerberus Capital Management will bring Chrysler's ballooning costs in line, and as a private company they don't have to tell anyone how they're going to do it.
"They don't have to report a single thing," Niemann added. "So until we see ambulances pulling up to the Fenton plant as they slash and burn we won't know what is actually going on within the field."
The city of Fenton and state of Missouri offered Chrysler millions of dollars in tax incentives to pay for the renovations at the plants. For KMWU, I'm Adam Allington.