Global Engine Manufacturing Alliance World Engine Plant: Open for Business
03 Octobre 2005 - 10:00PM
PR Newswire (US)
* Two Dundee, Michigan plants will build 840,000 engines annually *
Plant efficiencies deliver premium engine features at entry-level
price * Innovative GEMA operation aims at new productivity
benchmark for engine plants DUNDEE, Mich., Oct. 3
/PRNewswire-FirstCall/ -- The Global Engine Manufacturing Alliance
(GEMA) launched volume production today of the much- anticipated
World Engine in the first of two plants opening here. This plant
holds the promise of a new standard of global engine manufacturing.
To commemorate the Job One event, Michigan Gov. Jennifer Granholm
joined Chrysler Group President and CEO Tom LaSorda, the United
Auto Workers union and other company officials at the Dundee, Mich.
facility. Each GEMA plant will have the capacity to build 420,000
engines annually. The second GEMA plant in Dundee is scheduled to
launch in 13 months. Altogether, 530 new jobs will be created,
combined with an overall investment of $803 million. "Michigan
remains the heart of the auto industry, and is proving here in
Dundee that it can continue to compete globally in securing the
high-tech automotive jobs of the future," Granholm said. "This
project is an excellent example of how the local and state
government can partner with private business to invest in, and
train a highly qualified workforce." "GEMA represents a whole new
business model for engine development -- one that leverages the
combined capabilities of its partners and economies of scale in
order to generate breakthrough improvement," said LaSorda. "These
four-cylinder engines will provide exceptional performance, fuel
efficiency, reliability and refinement. In short, the World Engine
is the right product at the right time." World's Largest Engine
Operation The two Dundee plants are part of a five-factory global
venture building a family of 1.8-liter, 2.0-liter and 2.4-liter
engines jointly developed by DaimlerChrysler, Hyundai Motor Company
and Mitsubishi Motors Corporation. When all five plants are fully
operational, the combined project will be the largest engine
manufacturing operation in the world. Annual production will reach
1.8 million units, including production sites in Asan and Hwasung,
South Korea, and Shiga, Japan. "This project will allow
DaimlerChrysler to realize annual savings of $100 million and
attain a leading position in the market for the world's best four-
cylinder engines," said Dr. Rudiger Grube, DaimlerChrysler Board of
Management member responsible for Corporate Development and
Northeast Asia Operations. "The Global Engine Manufacturing
Alliance enables us to fully benefit from our strategic
partnerships and achieve maximum economies of scale." Manufacturing
Efficiencies Pay for Premium Engine Features GEMA President Bruce
Coventry credits the alliance's practice of focusing exclusively on
its core business as a key element in GEMA's efficient operation.
"Our expertise and value to the customer is in the designing, high-
precision machining and assembling of engine blocks, cranks and
heads," Coventry said. "Virtually all other support operations are
provided by our Integrated Service Providers, or ISPs -- experts in
each of their respective areas." The ISPs use their refined and
proven business practices to provide GEMA with efficient operations
at a cost savings. For example, the company responsible for the
design and construction of the plant now provides building
maintenance. Tool set-up and consigned inventory is managed by a
company who specializes in tooling. These are only two of 45
examples of how GEMA is leveraging expertise for maximum
efficiencies. The significant savings achieved in design,
purchasing and manufacturing is going back into the product itself
in the form of technology and refinement. Features such as variable
valve timing, high-pressure die-cast aluminum engine block,
forged-steel crankshaft and select-fit pistons, tappets and
bearings are not typically found nor expected in entry-level, four-
cylinder vehicles. Innovative Work Scheduling An innovative work
schedule increases plant productivity but still gives employees
more family time. Three crews work four 10-hour straight-time
shifts per week. A typical production schedule provides 80 hours
per week of production time, while the GEMA schedule provides 120
hours of production time in one week. Compared to a traditional
plant schedule, individual employees work 49 fewer days per year,
but the plant operates 49 more days. "To compete in a global
industry and maintain market leadership, it is necessary to produce
the highest quality engines utilizing the most efficient methods
available," said Nate Gooden, UAW Vice President of the UAW's
DaimlerChrysler Division and member of the DaimlerChrysler
Supervisory Board. "As market pressures change, organizations need
to adapt and be flexible enough to meet new demands. Both parties
recognized early in the negotiation process that the distinct
culture at GEMA was a strategic competitive advantage and required
an agreement that promoted an environment that emphasized
operational flexibility, jointness, world-class quality and
productivity." A rigorous training program with more than 1,500
hours of orientation and training has yielded a highly qualified
and dedicated workforce. The employee teams are adopting the latest
practices of lean production and quality control. Employee
absenteeism is under two percent, well below the industry average.
Global Engine Manufacturing Alliance Joint Venture The World Engine
was co-developed under a joint venture between DaimlerChrysler,
Hyundai Motor Company and Mitsubishi Motors for the Global Engine
Manufacturing Alliance. While Hyundai had the lead design
responsibility for the base engine, the Chrysler Group and
Mitsubishi made significant engineering contributions to the
design. Through the involvement of all three automakers, durability
testing for the World Engine exceeded 16 million customer
equivalent miles. Additionally, partners have shared best practices
and lessons learned from past and current experiences, resulting in
improved refinement, quality and durability. Chrysler Group
engineering led the development of key technologies that will give
its customers high-value benefits in cost-efficient engines. These
technologies include intake manifold control valves, Dual Variable
Valve Timing (VVT), both launching in the U.S. first in Chrysler
Group versions of the World Engine. By optimizing the partners'
strengths, global economies of scale and the latest practices in
flexible teams and machines, GEMA aims to set a new benchmark in
engine plant productivity. DATASOURCE: DaimlerChrysler CONTACT:
David Elshoff of Chrysler Group, +1-248-512-2690, ; or Misty
Mathews of Strat@comm, +1-248-649-8000 Web site:
http://www.media.daimlerchrysler.com/
http://www.daimlerchrysler.com/
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