Dundee engine workers show Michigan the way back

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1 Page 1 of 6 Customer Service: Subscribe Now Pay FREEP.COM WEATHER JOBS CARS REAL ESTATE APARTMENTS SHOPPING CLASSIFIEDS 7-DAY STO More Auto news SUVs not as safe as thought Today's top stories HOLIDAY CRIME WRAP-UP: Road arrests up and down across state New year off to a violent start Students, staff try to ease strain on campus counseling THE FINAL DRIVE: Detroit has just a few more weeks to put the finishing touches on its downtown renovations for the Super Bowl MIKE DUFFY: New year, new lineups AUTO NEWS Dundee engine workers show Michigan the way back Futuristic plant is leaner, smarter, big on teamwork December 30, 2005 BY JOE GUY COLLIER FREE PRESS BUSINESS WRITER Last of a five-part series Jimmie Pierce of Allen Park faced the downside of the auto industry two years ago when Lear Corp. closed the plant where he worked for 12 years. But Pierce, 36, the son of a Ford Motor Co. factory worker, now sees the upside of the auto industry. He landed a job at a new engine plant in Dundee that's a joint venture of DaimlerChrysler AG, Mitsubishi Motors Corp. and Hyundai Motor Co. The plant started hiring workers two years ago and began making engines in October. The facility employs 210 people and will more than double in size in 2007 when a second plant opens on the same site. In a Michigan auto industry characterized largely by angst and fear, the Dundee plant provides hope and growth. this Print this Framed by a ring he can pull to slow production, team leader Jimmie Pierce of Allen Park installs an engine's timing chain this month at the Global Engine Manufacturing Alliance plant, a DaimlerChrysler, Mitsubishi and Hyundai joint venture. It began production in October. (ROB WIDDIS/Special to the Free Press) SPECIAL REPORT: DRIVEN AWAY: 5-part series on the auto industry's lost generation RELATED ARTICLES: LaSorda embraces future in Michigan Advertisem "Even if you were skeptical," Pierce said, "a couple of months in here and, honestly, it turns you around." What makes this engine plant in Dundee different? What gives Pierce and his coworkers a brighter outlook? PROGRAMS ON THE RISE Most experts agree metro Detroit will continue to be one of the world's leading centers for automotive research, training and cutting-edge manufacturing. Here are some programs that will carry Detroit and its next generation of

2 Page 2 of 6 The answer, experts say, underscores where Michigan's auto industry is strong and where it can be stronger going forward. The Dundee plant is built on a set of principles that should help it to compete with any in the world, they say. Everyone is required to have advanced education or training. Traditional union rules have been relaxed. Any worker, union or not, can do any job. And the plant is more automated. Employees build engines mostly by operating computerized machines, not through pure physical labor. The Dundee plant and dozens of other facilities and programs are proof the region can continue to be a global hub for the automotive industry for years to come. Michigan still accounts for about 25% of all U.S. employees in auto manufacturing. Metro Detroit is home to the headquarters for General Motors Corp., Ford and the Chrysler Group. And while some foreign companies are gaining market share, they're also hiring talent in metro Detroit. Toyota Motor Co., Nissan Motor Co. and Hyundai all have key technical centers in the area. Education is the key The auto culture, though, is changing and it represents a challenge for Michigan. The auto industry of the future will employ fewer people, said David Cole, chairman of the center for Automotive Research in Ann Arbor. As factories become more efficient, the companies will be able to make more cars and trucks with fewer employees. The employees who remain will need higher levels of education, Cole said. A high school education won't be enough. A generation ago, working in an workers into the future. Global Engine Manufacturing Alliance Location: Dundee. Employees: 210 (500 by 2007). Description: Engine-making facility jointly owned by DaimlerChrysler AG, Mitsubishi and Hyundai. What makes it special: UAW and companies worked together to create a flexible workforce with advanced education requirements. Ford's Dearborn Truck Plant Location: Dearborn. Employees: 2,800. Description: Builds the Lincoln Mark LT and F-150 truck, the world's best-selling vehicle. What makes it special: A state-of-theart, environmentally friendly plant that has given new life to the historic Rouge complex. GM's Lansing Grand River Plant Location: Lansing. Employees: 1,800. Description: Makes the Cadillac CTS, STS and SRX vehicles. What makes it special: One of the topranking North American plants in quality and efficiency. Builds vehicles that spurred Cadillac's resurgence. GM's Lansing Delta Township Assembly PLANT Location: Lansing. Employees: 150 (expected to grow to as many as 2,900 in 2007). Description: Slated to start production in late 2006, the plant reportedly will build a new lineup of mid-sized SUVs. What makes it special: Will use best-inclass manufacturing techniques expected to make it one of the most flexible, efficient and environmentally friendly plants in the world.

3 auto factory involved backbreaking work -- moving heavy parts, boring holes, manually shaping metal with industrial equipment. While physical labor is still a part of many jobs, the work is changing. Factory workers are increasingly operating computers, even writing software code, to run the machines that build the cars and trucks. Factory workers of the future will need advanced education to meet the requirements, Cole said. Knowledge and skills, not muscle, will set them apart. "We always talk about the haves and have-nots," Cole said. "It's really going to become the knows and know-nots." Michigan's workforce must become more educated to keep up with the changing demands, said Patrick Anderson of the Anderson Economic Group in East Lansing. The state needs to raise high school standards so more students are prepared to attend two- and four-year colleges, Anderson said. Math and science programs need to be stressed and expanded so students have stronger technical skills, he said. Despite the overall economic woes in southeast Michigan, jobs based on technical skills and expertise show promise and pay high wages, Anderson said. From 1998 to 2003, the average annual wage for a technology job in the region grew from $52,904 to $65,722, according to a study Anderson produced for Automation Alley, an eight-county consortium aimed at fostering and attracting high-tech companies in southeast Michigan. More than a third of the high-tech jobs in the area were in the auto industry, the report found. COLLEGE FOR CREATIVE STUDIES Location: Detroit. Enrollment: More than 1,200. Description: Four-year, accredited university with one of the world's most recognized programs in transportation design. What makes it special: Claims more of its graduates work in the auto industry than any other U.S. college. Has 309 graduates working in the auto industry, 244 of them living in metro Detroit. Hybrid Development Center Location: Troy. Employees: 300 (eventually 400 with additional employees contributing from other locations). Description: Joint venture of GM, DaimlerChrysler and BMW to develop a two-mode hybrid system that can be used in a wide range of vehicles. What makes it special: Provides a flexible, world-class system for an emerging technology. Focus: HOPE's Machinist Training Institute and Center for Advanced technologies Location: Detroit. Enrollment: 290 in MTI; 113 in CAT. Description: Machinist training is a 31- week, full-time program that prepares students for careers in machining and metalworking. CAT offers hands-on manufacturing experience while students work toward two- and four-year degrees in manufacturing engineering and technology. What makes them special: A CAT student can take classes at the center's training facility, but still get a degree from an accredited Michigan university. In MTI, students learn how to operate various machine tools. Graduates go on to become machinists, product technicians, assemblers and metalworkers. Toyota Technical Center USA Location: Ann Arbor Township. Page 3 of 6 "I don't think abandoning the automobile industry is a smart move," Anderson said. "The automobile industry is the Employees: 700 (expected to add 400 workers by 2010). Description: Serves primarily as a design and engineering center for Toyota

4 cornerstone of the technology industry." Dundee plant is different In Dundee, about an hour's drive southwest of Detroit, a new engine facility is providing a view of what the future can look like under the new rules for the industry. Two plants, one still under construction, are part of what's called the Global Engine Manufacturing Alliance, or GEMA. vehicles aimed at the North American market. What makes it special: As Toyota expands production and sales in North America, high-paying engineering jobs are staying in Michigan. NISSAN TECHNICAL CENTER NORTH AMERICA Location: Farmington Hills. Employees: 1,000. Description: Houses engineers and designers focused on developing cars and trucks for the North American market. Page 4 of 6 At full capacity, the GEMA plants in Dundee will churn out 860,000 engines a year with a workforce of about 500 people, about a quarter the number of workers needed by some existing engine plants. Hourly wages range from $21 to $30. The GEMA plant draws mixed reaction from workers at the older plants in metro Detroit. Some resent that jobs go to Dundee as their own plants get smaller. But the plant shows a contrast between the new and old. The floors and machines are sparkling clean, and for an auto plant it's amazingly well lit. "This is not your father's plant," said Daisy Red, 38, the manager of business planning for the Dundee plant and future GEMA global business. She has spent 10 years in the auto industry. The differences are more than superficial. The Dundee plant is highly automated with an educated workforce and a team approach to manufacturing. Dundee is a UAW plant, but the union agreed to different terms, such as a single class of employee. Traditional plants have several classifications that dictate what jobs union workers can perform. The Dundee rules give the plant more flexibility in assigning work. Anyone, including an office worker, is capable of working the What makes it special: Brings top talent from around the world to metro Detroit. THE NEW GENERATION 24, Saline Occupation: Technical support specialist at GEMA plant in Dundee. Education: University of Michigan (mechanical engineering). What he drives: Declined to say. Quote: As a whole, the quality of U.S. "cars is getting tons better. I think they just need to work out their processes. They need to make the cars for cheaper, so they can increase their profits.... They're working on it. Everyone's working on it." THE SERIES Monday: Detroit automakers are scaling back and closing plants, prompting many young workers to switch fields or leave the state. Tuesday: Blue-collar workers feel the pinch as high-paying factory jobs dry up. Wednesday: Many young professionals leave metro Detroit for cities with better job markets. Thursday: Despite the decline, many bright young workers move to Michigan's auto industry for white-collar jobs. Today: Detroit's auto industry is still alive but the future will be leaner, smarter and more global.

5 Dundee engine workers show Michigan the way back line. Every employee must have a two-year degree, trade certification or five years' experience in advanced computer machining. To read Parts 1 through 4, go to Page 5 of 6 Dundee also has a true global scope with sister plants in Japan and South Korea, home of Mitsubishi and Hyundai, respectively. Each site is benchmarked against the other, sharing experiences and problems to help them improve. "The pooling of all that knowledge and expertise is probably our best asset for the future," said Garrett Francis, 31, an operations manager in Dundee. Reason for hope The GEMA facility, a sprawling white and blue structure along the rural landscape of U.S.-23, has spurred optimism in this part of Michigan. David Morse, 24, grew up in nearby Milan. He graduated from the University of Michigan with an engineering degree but initially took a job as a bluecollar worker in Dundee. He has since become a technical support specialist, a white-collar job. The Dundee factory has given him a chance to get in on the ground floor of the auto industry, Morse said. "I definitely wanted to do automotive when I graduated," he said. "I've always liked cars." Two years ago, the Dundee plant gave Pierce, the former Lear worker, a second chance in his young auto career. Pierce grew up in Wyandotte and spent the first 12 years of his career with Lear, an automotive supplier. His father has worked for 35 years at Ford's Rouge complex. Pierce landed his job at Lear with only a high school education but quickly realized that wasn't enough anymore. He was getting passed up for promotions. With the Romulus plant slated for closure, Pierce enrolled in an associate's degree program at Henry Ford Community College. That degree helped him get the job in Dundee. "At Lear, a lack of education held me back," Pierce said. "It told me that it's not enough to work on the line for 12 years. You also have to have the education to back you up." Pierce said he enjoyed working for Lear, but he can see the differences at Dundee. Every worker in Dundee is like one of the top workers at his Lear plant, he said. Management and union employees work together better, Pierce said. They don't have to deal with as many rules and hierarchies. A few weeks ago, Pierce came up with a new idea for helping his team torque parts on the engine faster. Two days later, he and his team members were trying out the idea. "At Lear that would have took six months," he said.

6 Page 6 of 6 While many workers at older plants feel their jobs could be cut in the next few years, Pierce is confident in his future. He plans to work in the auto industry for 30 years or more and retire. "It will be up to me," Pierce said. "I feel I can, but you have to take advantage of the training that's offered you.... You can't just stay stagnant." Contact JOE GUY COLLIER at or jcollier@freepress.com this Print this Copyright 2005 Detroit Free Press Inc. Use of this site indicates your agreement to the Terms of Service and Privacy Policy, updated 9/21/05.