By K.O. Jackson, Kokomo Tribune business writer
kirven.jackson@kokomotribune.com
Washington's Car Allowance Rebate System ended Monday, but in some aspect, cash-for-clunkers continues.
CARS was designed to take older, less fuel-efficient cars off the road by offering customers rebates up to $4,500 for new, more fuel-efficent vehicles.
The nearly month-long, $3-billion program attracted almost a half-millon new car buyers.
Toyota was the clunker-replacement favorite. According to the U.S. Department of Transportation, Toyota had a 19.2 percent clunker-market share, and its Corolla was the top-selling vehicle.
Among other major automotive manufacturers, only Kia, Hyundai and Nissan had a smaller, clunker-market share than Chrysler Group LLC.
The recent-bankruptcy-emerged automaker had 8.3 percent of the clunker-trade-in market.
That market share was with Chrysler doubling the government's $4,500 rebate, escalating it to $9,000.
That small-market share still means jobs and money.
And that's good enough for Chrysler workers.
Cash-for-clunkers' success meant more vehicles being sold, which meant more vehicles being built.
"As car volume increased," said Rich Boruff, United Auto Workers Local 685 president, "there was an increased need for more manpower."
Chrysler's minivan is built in Canada. Kokomo's Chrysler plants makes the vehicle's transmission.
During cash-for-clunkers, Boruff said there was such an increased demand for the minivan it required "adding a third shift."
"We first got 42 [employees] called back to Indiana Transmission Plant I. And then as more of the minivans were sold, we got 136 called back at the Kokomo Transmission Plant. We still have about 500 out."
Jeff Everett, president of UAW Local 1166, said 22 employees were called back during the cash-for-clunkers program.
The Kokomo Casting Plant runs two-shifts, five-days-a-week, said Everett. And working at a plant with 600 employees, any additional work or call-backs are welcomed, he said.
"Production has been up because the inventory levels have been low on the dealers' lots," said Everett. "I hope the people who got called back get to stay. I am hoping to hang on to the people who got called back."
Teaching continues
As current production continues, Chrysler workers are still learning the Fiat SpA way.
That detail-driven way is called "World Class Manufacturing." According to Fiat SpA, WCM is used to improve quality and efficiency. It is being incorporated into the company it helped rescue from Chapter 11 bankruptcy.
The new company's first combined automotive entry is expected to be the Fiat 500. To be built in Mexico, it will be sold in North America in 2011.
Hopefully, said Boruff, by that time, all Chrysler employees will have adjusted to the WCM way of conducting business, which could mean continued car-volume increases.
And more Chrysler workers.
"I hope Americans continue to support this," he said. "I don't have a crystal ball to tell you how long this will go on, but I can tell you I want to keep it going.
"The WCM has really been a lot to learn, and it has changed the way we learn. We want to visualize it and learn. There is a lot of discipline behind it. They have really cleaned the place up. It is amazing how clean it is."