A little good news for a change
Friday, Jul 15, 2016 - Posted by Rich Miller
* Crain’s…
Fiat Chrysler Automobiles plans to hire 300 new workers at its huge factory in Belvidere as it revamps the facility to produce the Jeep Cherokee.
FCA USA, as the auto manufacturer is also called, said today it will invest $350 million in the factory to ready it for the Jeep Cherokee, one of the company’s top sellers during an auto sales boom that resulted in a record number of sales in the U.S. last year. […]
Production of the Cherokee will start in 2017. Right now, the vehicle is made at the Fiat Chrysler facility in Toledo, and that plant will continue producing it until the Belvidere plant is ready. […]
“This investment will strengthen the FCA US presence in Illinois and create good paying manufacturing jobs for Illinois residents,” Illinois Governor Bruce Rauner said in a statement. “We’re proud FCA US chose Illinois for production of the Jeep Cherokee.”
* Tribune…
Illinois just had its best second-quarter haul of venture capital in years thanks to a single deal, according to one national scorecard.
SMS Assist, the Chicago-based technology company that helps property owners manage maintenance across locations, accounted for more than half the funds raised. The privately held company’s $150 million Series D funding round in June pushed its valuation over the billion-dollar mark, making it the city’s latest unicorn.
Seventeen Illinois companies raised nearly $281 million in the second quarter of 2016, says a new MoneyTree Report by PricewaterhouseCoopers and the National Venture Capital Association, based on data from Thomson Reuters.
Most of the quarter’s investments were in the $5 to $10 million range, in early- and expansion-stage companies, which raised more than $88 million combined. But two later-stage, business-to-business companies — SMS Assist and SpringCM, which offers cloud-based document management for businesses — took in the most dollars. SpringCM announced a raise of $17.5 million in June.
- Louis G. Atsaves - Friday, Jul 15, 16 @ 11:14 am:
Excellent. I will know where my next Jeep Cherokee is coming from!
- Annonin's - Friday, Jul 15, 16 @ 11:20 am:
And what will the Toledo plant be makin’ in ‘18?
- DuPage - Friday, Jul 15, 16 @ 11:27 am:
More good paying jobs for Illinois, not because of, but in spite of Rauner who keeps saying how bad Illinois is.
- Nearly Normal - Friday, Jul 15, 16 @ 11:32 am:
Good news for the Rockford area in regards to FCA enlarging the plant in Belvidere.
Now, how do the venture capital investments add jobs and taxes to Chicago and Illinois?
- Illinois Bob - Friday, Jul 15, 16 @ 11:42 am:
I suspect that most of that $350 million “investment” will be in new equipment rather than real property expansion. Probably made in China, and almost certainly not in Illinois. 300 workers is of course a good thing. Anyone know how much off peak employment the Belvidere plant is currently operating? Are they still UAW jobs, or did that change when Fiat got a bargain buying Chrysler?
- Illinois bob - Friday, Jul 15, 16 @ 11:50 am:
@Nearly Normal
=Now, how do the venture capital investments add jobs and taxes to Chicago and Illinois?=
I’ve seen a lot of venture capital in Illinois going into modestly paid employment search firms and marketing. I haven’t heard of much in manufacturing and blue collar jobs.
A lot of it is in downtown high rises, for which increased income increases tax assessment value until Madigan’s law firm get the owners an unfair tax break.
With the young, modestly paid service workers getting those jobs it pays for rent, restaurants, clothes and entertainment, which is grossly overtaxed in Chicago.
This type of investment is about as much risk as investors care to make in Illinois. If it fails, you just shut the doors, hand in the keys and sell the computers. Little liquidation risk.
Perhaps the biggest Chicago asset is that twenty somethings really love living in Lincoln Park and rising Chicago neighborhoods. Problem is that most leave when they want to make more money or have kids.
- Chicago 20 - Friday, Jul 15, 16 @ 11:53 am:
What is FCA thinking?
Weren’t they listening to Bruce Rauner on how Illinois needs his turn around agenda passed with right to work zones before Illinois can land this collective of good paying jobs with good benefits? /s
- AC - Friday, Jul 15, 16 @ 11:54 am:
I used to think I was too much of a “glass half full” kinda guy, but thanks to Illinois Bob I now feel like I’m more of a realist than a pessimist.
- jerry 101 - Friday, Jul 15, 16 @ 12:00 pm:
The Jeep Cherokee is a top seller? I test drove a couple a year ago. Pieces of junk. I now drive a Subaru. Way better for the same price or less.
- Thunder Fred - Friday, Jul 15, 16 @ 12:12 pm:
Did you just try to big time the board by name dropping Subaru?????
- City Zen - Friday, Jul 15, 16 @ 12:14 pm:
=And what will the Toledo plant be makin’ in ‘18?==
The Wrangler and the Wrangler Pick-Up Truck.
- City Zen - Friday, Jul 15, 16 @ 12:20 pm:
==What is FCA thinking?==
FCA is investing twice as much in the Toledo plant, located in a state that recently lowered its state income tax rate. Yeah, what were they thinking?
- Nearly Normal - Friday, Jul 15, 16 @ 12:23 pm:
http://money.cnn.com/2016/07/15/news/companies/fiat-chrysler-investment-jobs/index.html
This article has the details on the Jeep plants in Belvidere, INDIANA and Toledo, Ohio.
Yikes! Illinois gets a plus and CNN puts the plant in Indiana! Sheesh.
- wordslinger - Friday, Jul 15, 16 @ 12:26 pm:
Jeep Cherokees sure beat the heck out of Dodge Darts and Neons.
When I was a kid, some of my crew’s dads worked there, making New Yorkers and Imperials.
–Anyone know how much off peak employment the Belvidere plant is currently operating? Are they still UAW jobs, or did that change when Fiat got a bargain buying Chrysler?–
Bob, I found the answers to those questions in about the same amount of time that it took you to type them.
Check out that google. It’s going to be big.
- Daniel Plainview - Friday, Jul 15, 16 @ 12:34 pm:
- I’ve seen a lot of venture capital in Illinois going into modestly paid employment search firms and marketing. -
On top of your unending list of accomplishments, you’re also able to personally and expertly monitor the flow of venture capital in Illinois? And this is your professional assessment?
I’m in awe of your abilities, to delude yourself.
- A guy - Friday, Jul 15, 16 @ 12:58 pm:
That is good news. That plant has been a true survivor through a multitude of crises. It’s had at least 9 lives. Good for the area. Good for the state!
- Chicago 20 - Friday, Jul 15, 16 @ 1:14 pm:
- Zen
“In a state that recently lowered its income tax.”
It’s a good thing they lowered their income tax, otherwise their income tax rate would be almost double Illinois’ rate.
Ohio has a progressive income tax that tops out at 4.997% and Toledo’s income tax rate is another 2.25% for a total of 7.247% compared to Illinois current income tax rate of 3.75%.
- Anonymous - Friday, Jul 15, 16 @ 1:52 pm:
Someone should tell CNN the correct location of Belvidere.. #CNNFail
http://money.cnn.com/2016/07/15/news/companies/fiat-chrysler-investment-jobs/
- City Zen - Friday, Jul 15, 16 @ 2:04 pm:
@Chicago20
Good point, but Ohio’s combined state and municipal tax rates are break-even at around $65,000 with Illinois.
And Ohio’s progressive state income tax rates are break even with Illinois’ flat tax up to $190,000. So progressive doesn’t necessarily have to mean higher.
- Chicago 20 - Friday, Jul 15, 16 @ 2:51 pm:
-Zen
- Break even around $65,000
Not even close Zen.
Anyone in Toledo who earns more than $10,400 pays more in income taxes, percentage and dollar wise, than anyone in Illinois.
The break even point for the progressive income tax is over $179,600 less than your calculations.
- City Zen - Friday, Jul 15, 16 @ 3:10 pm:
@Chicago20
You’re incorrectly combining a flat rate with a progressive rate. You have to calculate both separately. And when you do:
1) Dollar wise, $65K is the break even for IL state vs OH state + OH municipal income taxes.
2) Dollar wise, $190K is the break even for IL state vs OH state income taxes.
Ohio’s progressive tax rates don’t exceed Illinois’ flat rate until you make over $83,350. And the rates below that are so low, that it takes another $100K of income to make up the difference. Hence $190K.
And this doesn’t even take into account property tax differences, which would offset that municipal tax by some amount.
- Amalia - Friday, Jul 15, 16 @ 3:55 pm:
did a Ford plant close recently in Illinois? what is better quality, Ford or Jeep?
- illini - Friday, Jul 15, 16 @ 4:32 pm:
@Daniel Plainview - Excellent.
- wordslinger - Friday, Jul 15, 16 @ 4:35 pm:
Amalia, Ford is actually investing $1.1 billion to expand its two plants on the South Side. It was part of their new contract with the UAW.
I guess Ford and Chrysler didn’t get the Death Spiral memo.
- Arthur Andersen - Friday, Jul 15, 16 @ 4:39 pm:
Amalia, the Ford plant on the South Side is doing pretty well. Their big seller right now is the “Interceptor” Police SUV.
Most quality surveys would tell you Fords have fewer problems than Jeeps, but it’s highly dependent on the model and even model year.