Great news out of Illinois today! Chrysler has announced that it is hiring 1,800 new workers and stepping up production at their plant in Belvidere. It’s a good story that coincides with the news that the U.S. economy gained 50,000 manufacturing jobs in the last month.

Approximately 500 of the new employees will focus on the new Dodge Dart while others will work on existing models.  The new hires represent a 66% increase in plants workforce and all are expected to be hired by the third quarter this year.

Additionally, it is expected to create hundreds of other jobs at parts suppliers and other vendors – part of the ripple effect that NAM President Jay Timmons spoke about during his January “State of Manufacturing” speech in Cleveland. He told those in attendance that:

“For every dollar invested in manufacturing, $1.35 of indirect economic activity is generated – the highest multiplier effect of any economic sector, by far. And for every job created in the manufacturing sector, up to another three jobs are created elsewhere in the economy.”

The addition of these jobs are due in large part to a pro-growth business environment for Chrysler – part of the polices that NAM has said are essential to achieve a Manufacturing Renaissance. Hopefully policy makers are paying attention to the results.

Prior to President Obama’s announcement of his new economic team members on Friday, Jan. 7, several media outlets reported the anticipated appointment of Ron Bloom to a new, elevated White House position on manufacturing, with the inevitable shorthand of “manufacturing czar” being mentioned. Since then, the speculation has subsided.

Which is all for the good. Sometimes, personnel ISN’T policy, policy is policy.

In his current capacity as Senior Advisor to the Secretary for Auto Issues and Auto Task Force senior member — “czar” would be a shorter title, wouldn’t it? — Bloom spent part of last week at the Detroit Auto Show. He submitted a post at the Treasury Department’s blog, “Reflections from the Detroit Auto Show.”

Looking at the innovations premiered at this year’s show only confirmed my belief that in the next dozen years, the automobile industry will see more change than it has in the last 50 and that that change will encompass almost every aspect of what we think of today as the car business.

We don’t immediately find the full text of Bloom’s remarks. Here’s coverage:

• Detroit Free Press, “U.S. Treasury advisor: Detroit Three recovery can happen to all U.S. manufacturing“
• Detroit News, “Bloom reflects on $85 billion bailout“
• Detroit News, “Auto czar buys a Dodge, says Steve Rattner no Clooney“
• Associated Press, “Obama official encouraged by auto recovery“

President Obama was in Elkhart County, Ind., and Vice President Joe Biden traveled to NextEnergy, a nonprofit, in Detroit on Wednesday to promote battery development as an important piece of developing the less-polluting vehicles. From The Detroit News, “Big 3, Michigan win big in battery grants”:

Detroit — Michigan and Detroit’s Big Three automakers will receive more than $1.3 billion of $2.4 billion in federal battery and electric vehicle grants, the White House said today.

“The battle for America’s future will be fought and won in places like Elkhart and Detroit,” President Barack Obama said today at a speech in Indiana, outlining the awards that do not need to be repaid.

Five teams in Michigan will receive $966 million of the $1.5 billion in battery manufacturing grants as part of an effort to speed the introduction of mass market plug-in electric hybrid vehicles.

Funding for the 48 grants for advanced battery and electric drive projects comes from the stimulus bill, the American Recovery and Reinvestment Act. The projects were selected through a competive Department of Energy process, and recipients will put up a 50 percent cost share.  The White House news release provides more details of what the grants will cover:

•  $1.5 billion in grants to U.S. based manufacturers to produce batteries and their components and to expand battery recycling capacity;
•  $500 million in grants to U.S. based manufacturers to produce electric drive components for vehicles, including electric motors, power electronics, and other drive train components; and
•  $400 million in grants to purchase thousands of plug-in hybrid and all-electric vehicles for test demonstrations in several dozen locations; to deploy them and evaluate their performance; to install electric charging infrastructure; and to provide education and workforce training to support the transition to advanced electric transportation systems.

President Obama’s speech.

Secretary of Energy Steven Chu traveled to a Mecklenberg County, N.C., factory to announce a $49 million grant for Celgard, which makes porous membranes for rechargeable lithium-ion batteries. Chu’s speech.

More news coverage…

• Milwaukee Journal-Sentinel, “Johnson Controls wins big hybrid battery grant.”
• Bloomberg, “GM, Chrysler, Ford Share in U.S. Grants for Batteries.
• NPR, “Obama Returns to Indiana, Says Stimulus is Working“
• Detroit Free Press, “$1.36 billion to create technology epicenter in Michigan“

The influx of federal money is definitely a big story in Michigan and the Detroit Area. More from the Free Press:

Yesterday’s forum at The New America Foundation, “Manufacturing a Better Future for America,” featured a discussion of federal support — the term “bailout” was used — for GM and Chrysler.

The context: Speakers advocated a national industrial policy and more restrictive trade policies to invigorate the U.S. manufacturing sector. We think of the panel as representing the organized labor wing of the Democratic Party.

Asking a question, Bill Frymoyer, director of government relations at the Stewart and Stewart and a former Gephardt aide, hailed what he described as the apparently successful rescue of the domestic auto industry. He elicited this response from Leo Hindery, Managing Partner of Intermedia Partners, chairman of the foundation’s Smart Globalization Initiative, and an influential Democratic activist. Hindery:

The reason the auto recovery worked so well is Ron Bloom largely steered it. And Ron Bloom, for those of you who don’t know, came out of the Steelworkers. He spoke more cogently and capably about the need for a manufacturing policy before a lot of us…and I think he brought a sense of manufacturing policy to that initiative, not strategy but policy.

And this is an issue that Scott [Paul] and I have gone back and forth on: Are what we talking about here, is it a strategy or is it a policy? And we think, Scott and I and Ron, I think, would say, it’s a policy. And when you have a policy, then you save CIT if it needs saving, because it does certain things, you approach GM and Chrysler as he tried to drive the administration, because it would fit under his sense of policy. Strategy is transient. Policy’s the same.

Also commenting was Scott Paul, executive director of the Alliance for American Manufacturing: (continue reading…)

For the moment. From Reuters, “U.S. top court justice grants Chrysler sale delay“

In looking for informative and comprehensive news coverage of the Detroit automakers, we turn to the Detroit newspapers, still plural, thankfully.

The Detroit News’ website is http://www.detroitnews.com

The lead headline on its webpage is: “GM to enter bankruptcy,” albeit in a much bigger font. Here’s how the morning will shake out, the News reports.

Early morning: GM files paperwork with U.S. Bankruptcy Court in New York
10 a.m.: GM Chief Financial Officer Ray Young briefs reporters in New York
11:55 a.m.: President Obama makes a statement about GM in Washington
12:15 p.m.: GM Chief Executive Fritz Henderson holds a press conference in New York

The Detroit Free Press’s website is http://www.freep.com

The Free Press’s lead headline on its website: GM files for bankruptcy protection

For the hard-hit Detroit metropolitan area, there is still some good news today:

AP sources: GM to stay in RenCen That’s the Renaissance Center, downtown.

Free Press, “Penguins still no match for Red Wings, who roll to 2-0 series lead”

The Detroit Free Press covers the White House’s instructions to General Motors and Chrylser, including the forced departure of GM’s CEO, Rick Wagoner.

U.S. shreds auto plans

Obama gives Chrysler 30 days to join Fiat, forces Wagoner out at GM

President Barack Obama will give General Motors 60 days to craft a new survival plan without Chairman and Chief Executive Rick Wagoner, and set a 30-day deadline for Chrysler to either partner with Fiat SpA or shut down.

Granholm: Wagoner ‘sacrificial lamb’

WASHINGTON — Gov. Jennifer Granholm says Rick Wagoner, the General Motors chairman and CEO forced out of his job in the Obama administration’s final effort to revive the ailing U.S. auto industry, is a “sacrificial lamb.”

• Wagoner’s fast rise, hard fall
• GM: 60 days to find fix
• Industry reactions to Wagoner’s ouster
• Ford execs: We want to steer clear of any aid
• Statements from Wagoner, GM board
• Henderson to lead overhaul of GM

Commentary:

• Tom Walsh: It’s been time for Wagoner to leave
• Mark Phelan: Fiat won’t cure Chrysler’s ills
• Susan Tompor: GM investors could see even more turmoil today
• Editorial: U.S. can’t run auto companies

Detroit News:

Obama forces Wagoner out at GM

You can read it here, at the site of the Senate Conservative Fund.

UPDATE (1:35 p.m.): White House Press Secretary Dana Perino and Deputy Chief of Staff Joel Kaplan just briefed the press on the latest developments. In extended entry…

(continue reading…)

Where have we seen that headline before?

Detroit News:

Inaction on automakers would cost taxpayers billions

WASHINGTON — The U.S. auto industry’s problems will cost taxpayers plenty whether or not the government helps Detroit. – 10:22 am

Dems, White House agree to $15B auto bailout
GMAC extends deadline for tender offers
Stocks rise on optimism about Detroit bailout
Ford execs say company differs from U.S. competition
Car czar more likely a banker than gearhead
GM to offer lower loan rates
Lopez: Haircut politics bad for Big Three
Iacocca shows support for Big 3 leaders

PDF: Draft of auto bill
PDF: Summary of the auto rescue bill

Had no time to pay attention to today’s hearing by the House Financial Services Committee on federal financial aid for the domestic auto industry. Heck, it may still be going on. (Check CSPAN. Nope.)

Henry Payne of The Detroit News, a critic of government aid, reports at National Review Online what he’s hearing:

Detroit, Mich. — They can’t get it done.

That is the backroom word on Capitol Hill as auto executives from the Detroit Three wrapped up a second, and final, day of hearings before the House in attempt to get a $35 billion loan to keep them solvent.

Instead, speculation is that the Bush administration — loath to watch a U.S. automaker drown in its last month in office — will offer $8-14 billion band-aid to GM and Chrysler (both of which will run out of cash this month) possibly from the TARP.

“Detroit’s automakers will be lucky to get less than half of the $34 billion they’re seeking for survival, as several House members said today there was simply not enough time to examine the industry’s pitch and hammer out a consensus by next week,” reads one report from the Detroit Free Press. “Only stopgap funding of up to $14 billion appeared possible next week.”

This will act as a tourniquet for the two most-crippled automakers so they can limp along until the Obama administration can convene with a new Congress and tackle long-term surgery in the new year.

 Meanwhile, the latest from The Detroit News’ webpage:

• GM Board member says prepackaged bankruptcy ‘a fantasy’
  A member of General Motors Corp.’s Board of Directors today reiterated that the automaker would consider all options, including Chapter 11 bankruptcy, if Congress refuses to loan the company as much as $18 billion in emergency aid. - 5:48 pm
• Chrysler hires bankruptcy advisers
  Chrysler LLC’s hiring of a firm that specializes in bankruptcy proceedings was its adherence to the request by Congress to study the drastic step as an option, the automaker said in a statement today. - 5:02 pm
• GM to lay off 2,000 more workers
  With Congress debating whether to give General Motors Corp. up to $18 billion in financing, the automaker announced 2,000 more layoffs today at three factories. - 5:02 pm
• Congressional agency: Auto aid bill can’t use $25B from energy retooling program
  WASHINGTON — The Congressional Budget Office said a compromise bill to aid automakers can’t provide $25 billion from an Energy Department retooling program, dealing another blow to efforts to win quick aid before Congress goes home for the year. - 5:02 pm