Chrysler Breaks Ground for New Phoenix Engine Plant in Michigan

Marking another momentous milestone in the progress of its turnaround plan, the Chrysler Group earlier hosted a groundbreaking ceremony at the site of the future Trenton Phoenix Engine Plant in Michigan. The $730 million engine plant is part of the automaker’s $3 billion Powertrain Offensive as announced in February.

At groundbreaking ceremony were Michigan Governor Jennifer Granholm, Wayne County Executive Robert Ficano, Trenton Mayor Gerald Brown, UAW Vice President General Holiefield and other public officials. They were joined by the Chrysler Group executives.

“Today’s groundbreaking ceremony commemorates an important growth milestone for Chrysler Group and for the City of Trenton,” said Frank Ewasyshyn, the Chrysler Group Executive Vice President for Manufacturing. “Constructing our new plant at this site also confirms the commitment of Chrysler Group to investing in the communities where we do business and supporting economic development throughout the State of Michigan. This new plant will enable us to develop products that are designed to meet changing consumer tastes for more fuel efficient vehicles.”

The 822,000-square-foot Trenton Phoenix Engine Plant will produce a new family of fuel efficient V-6 engines, known inside the Chrysler Group as “Phoenix” engines. In time, the Phoenix family of V-6, designed to compete with Hypertech and other refined engines, will decrease manufacturing intricacy by paring the company’s four present V-6 architectures to one. The production of which is set to begin in 2009.

The plant will be situated adjacent to the Trenton Engine Plant, on Van Horn between Fort Street and Jefferson. The Trenton Phoenix Engine Plant will have an annual manufacturing capacity of 400,000 to 440,000 engines. Once the plant is completely equipped, the Trenton Phoenix Engine Plant will employ 485 full-time workers.

“These engine plants help cement Michigan’s position as the world’s leader in automotive innovation and excellence and show what can happen when state and local governments work with business to make our state competitive,” Governor Jennifer M. Granholm said. “From investing in our workers to creating a business-friendly climate throughout the state, we are working every day to attract new automotive companies and other industries that will bring jobs and grow here in Michigan.”

“We appreciate the confidence Chrysler Group has shown in its workforce by this continuing investment in powertrain operations, which will help preserve good-paying manufacturing jobs,” said General Holiefield, the UAW Vice President, who directs the union’s DaimlerChrysler Department. “UAW members at Trenton are 100 percent dedicated to quality, and we’re excited to participate in building the next generation of fuel-efficient engines for Chrysler’s great line-up of vehicles.”

The new Michigan plant of the American automaker will have an aggressive labor agreement that integrates Smart manufacturing initiatives, volume-bundled parts purchasing, flexible CNC-based machining, volume-bundled capital investment and standardized tooling.

The total cost of the building, land improvements and equipment mirrors one of the Chrysler’s biggest capital investments in the city. Since 2003, the Auburn Hills automaker has invested $4.4 billion in its Southeast Michigan manufacturing operations.

Payroll Michigan, Unique Aspects of Michigan Payroll Law and Practice

The Michigan State Agency that oversees the collection and reporting of State income taxes deducted from payroll checks is:

Department of Treasury Sales, Use and Withholding Taxes Div. Treasury Bldg. 430 W. Allegan St. Lansing, MI 48922 (517) 636-4730 http://www.michigan.gov/treasury

Michigan requires that you use Michigan form “MI-W4, Employee’s Michigan Withholding Exemption Certificate” instead of a Federal W-4 Form for Michigan State Income Tax Withholding.

Not all states allow salary reductions made under Section 125 cafeteria plans or 401(k) to be treated in the same manner as the IRS code allows. In Michigan cafeteria plans are not taxable for income tax calculation; taxable for unemployment insurance purposes. 401(k) plan deferrals are not taxable for income taxes; taxable for unemployment purposes.

In Michigan supplemental wages are taxed at a 3.9% flat rate.

You must file your Michigan state W-2s by magnetic media if you are have at least 250 employees and are required to file your federal W-2s by magnetic media.

The Michigan State Unemployment Insurance Agency is:

Bureau of Workers and Unemployment Compensation Cadillac Place 3024 W. Grand Blvd. Detroit, MI 48202 (800) 638-3994 http://www.michigan.gov/

The State of Michigan taxable wage base for unemployment purposes is wages up to $9000.00.

Michigan has optional reporting of quarterly wages on magnetic media.

Unemployment records must be retained in Michigan for a minimum period of six years. This information generally includes: name; social security number; dates of hire, rehire and termination; wages by period; payroll pay periods and pay dates; date and circumstances of termination.

Michigan Schools Meet Merit Requirements

Michigan Public Schools saw a significant “raising of the bar” for graduation standards in 2006. Governor Jennifer M. Granholm signed the Michigan Merit Curriculum into law after a team of educational and community leaders created recommendations for stricter and more comprehensive graduation standards. The new graduation requirements began with last year’s eighth grade classes in the Michigan Schools, and received broad support from the educational community.

Spring of 2007 marked the last time that juniors in the Michigan Schools were required to take the Michigan Educational Assessment Plan (MEAP) used in Michigan’s system of school rankings. Instead, Michigan Schools will now administer the Michigan Merit Exam (MME). One benefit of the new exam is that it will provide the students with the ACT test scores required for college admission, and therefore save families the cost and time of that additional test.

Michigan Schools See a Need for Change

According a Time Magazine article in December of 2006, the fall of the automobile industry was a major factor in prompting the Michigan Schools to make changes. The loss of jobs for non-graduates in that industry highlighted the need to increase the percentage of graduates from Michigan Schools. According to numbers from the EPE Research Center, Detroit Schools ranked 11th lowest in the nation for graduation rates with 21.7% in 2006.

The 2007-2008 school year will be the first year that Michigan Schools will see these changes in full force. According to a parent pamphlet created by the Michigan Schools, every student will create an Educational Development Plan (EDP) starting in the seventh grade. The plan will assist parents and students in the Michigan Schools with exploring career options and creating a guide to get the students to these goals.

Michigan Schools Raise Expectations

The Michigan Merit Curriculum High School Graduation Requirements are among the most demanding in the nation. Students in Michigan Schools, starting with those who entered 8th grade in 2006, will need to meet the following course load requirements to qualify for graduation: 4 English credits, 4 math credits, 3 science credits, 3 social studies credits, 1 physical education credit, 1 visual, performing and applied arts credit, an online learning experience, and 2 credits in a language other than English.

Prior to these unified state standards, graduation requirements differed among each district in the Michigan Schools. The 16 core graduation requirements are designed to give students better preparation for working in a global economy, and the skills needed to succeed in both college and the workplace.

Students in the Michigan Schools take up to 24 possible credits in their high school years. The additional electives are designed to help students pursue their specific field of interest like music, science, or business.

The pressure is on the Michigan Schools to rise to both national No Child Left Behind mandates, and the self-imposed new Merit guidelines. While most Michigan Schools residents are in agreement that the standards are overdue, the big question is how the state will help students achieve these goals. The 2007-2008 school year is critical as parents, teachers, and administrators strive to help the students in Michigan Schools achieve these goals.