Chrysler has reprieved its Sterling Heights assembly plant (SHAP) in Michigan, originally to close some time after 2012. It will add a second shift – almost 900 jobs – in the first quarter of 2011.

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In  a statement, Chrysler CEO Sergio Marchionne said: “Chrysler Group’s decision to keep Sterling Heights open beyond 2012 and add a second shift of nearly 900 workers in early 2011 was reached in order to support the company’s long-term product plan. After a careful review of all of our manufacturing operations, it became evident that more production capacity was needed and it made good business sense to extend the life of SHAP.”

To support the operation, suppliers will add nearly 500 jobs.

Marchionne also said Chrysler expects its European and South American sales to double between 2010 and 2011, to nearly 200,000 sales. This increase in sales is largely attributable to Chrysler’s ability to leverage Fiat’s international distribution networks, particularly in those markets.

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