I just heard that DaimlerChrysler is selling the Huntsville Electronics plant to Siemens which is another German company. My source says it will happen next month, in January 2004. Rumor also has it that 1/3 of the employees at the Huntsville plant will be cut when they move the radio and instrument cluster production to Mexico.
There have been rumors for several years that this plant would be sold but apparently the silly Germans are dumb enough to finally do it. When that plant sells it should raise the cost of these components at least 20% since there will be another middle man to collect profits. Although this is a significant price increase this will be nothing to what will happen in 5 to 10 years when the new car designers will specify new sub assembly parts that can not be made by low cost processes since there will be no one left in Chrysler by that time that knows how to manufacture that type of subassembly to tell the new car designers what the cost risers are for the new sub assemblies. The suppliers will supply what is specified. If you think not just look at how the US government operates buying $500 hammers when you can go to the local hardware store and buy a hammer, almost, but not quite like it for $10. ( It is not good for a supplier to tell their customer that they are stupid! )
You only have to look at what happened to AMC when they became "only" a final assembly plant for other?s parts to see the future of Chrysler. In my opinion they are going to get what they asked for but it sure is not going to be what they want long term! I hope I am wrong since I have several Chrysler cars and I would like to have a source of parts in the future.
Does anyone have more information on what plants will be sold by DaimlerChrysler and when?