Chrysler Group today announced plans to invest $450 million in its Kenosha engine plant for a comprehensive retooling in preparation for the launch of a new family of fuel-efficient V-6 engines.

The investment and retooling are part of an extensive powertrain offensive that will commit a total of $3 billion to develop and launch the new engines - known as Phoenix engines - in addition to a dual-clutch transmission joint venture with German parts maker Getrag and a new common axle family.

The investments are part of Chrysler Group's commitment to advanced powertrain technologies more fuel-efficient vehicles.

Scheduled to begin production in January 2011, the retooled Kenosha plant will have an annual Phoenix production capacity of 400,000 units when it reaches full volume.

Today's event, held at the 1.9 million square-foot plant, marks another significant milestone in the progress of the Chrysler Group's recovery and transformation plan.

Wisconsin Gov. Jim Doyle, Kenosha Mayor John Antaramian, Chrysler Group vice president of powertrain manufacturing Richard Chow-Wah, Kenosha engine plant manager Kevin Sell and United Auto Workers (UAW) officials participated in the announcement.

"This retooling investment will allow us to build an entirely new, globally competitive family of V-6 engines," said Chow-Wah. "The Chrysler Group recovery and transformation plan is focused on new products, and today's news supports a long-term commitment to new vehicle components that support consumer demand for refined, economical-to-operate vehicles for many years to come."

"Chrysler Group has had a 20-year-long presence in Kenosha - and even longer factoring in American Motors' storied past," Sell said. "With this new tooling and this new engine line, we're demonstrating the commitment of Chrysler Group to support economic development and invest in the communities where it does business."

Retooling for the Kenosha plant will begin in June 2010.
"Wisconsin is one of America's leading manufacturing economies. This $450 million commitment by Chrysler to our state demonstrates that we continue to attract important investments that provide high paying jobs for our workforce," Doyle said. "This shows what can happen when state and local governments work together to create a business-friendly environment."

Doyle said Chrysler Group will receive an incentive package of Kenosha County, City of Kenosha and State of Wisconsin funds totaling $16.8 million.

Once the plant is fully operational, the Kenosha plant will employ 700 full-time workers.

"This is an important day for the future of the UAW and Chrysler Group, and in particular for the continued competitiveness of our team here in the State of Wisconsin," said General Holiefield, UAW vice president, who directs the union's DaimlerChrysler Department. "We have a vision to see this company and our union grow this business and transform Chrysler Group into a stronger company that will be competitive for the long run. The investment we announce today proves that we are investing in this vision."

Chrysler Group has had a presence in Kenosha since 1987, when American Motors Corp. was acquired by Chrysler Corp. The company's current 2.7- liter V-6 has been produced there since 1997. The company's 3.5-liter V-6 was launched in 1999, part of a $624 million modernization of the plant. The plant was built in 1917.

Over the long term, the Phoenix family of V-6 engines will reduce manufacturing complexity by paring the company's four current V-6 engine architectures to one.

Headquartered in Auburn Hills, Mich., Chrysler Group is being acquired by the Cerberus Capital Management private equity firm from DaimlerChrysler of Germany.

In response to downtown Milwaukee's booming condominium market, First Weber Group plans to open its first downtown office. Read more in the new edition of the Small Business Times Real Estate Weekly bulletin, which also features a profile of Mark Sherry of M.A. Mortenson Company.

Although advocates of consumerism in health care have been touting the benefits of health savings accounts (HSAs) for years, the plans are still not being widely embraced in the marketplace, according to a new analysis by Information Strategies Inc. (ISI).
Wisconsin is one of only 13 states in which HSAs are being used by at least 5 to 7 percent of the health insurance users, according to the new report.
The company's analysts reviewed data from all 50 states and compiled surveys this year of more then 5,000 healthcare insurance users, 2,900 firms and other information sources in its creation of a national map of HSA usage (www.hsafinder.com/map/usamap.shtml).
Among the states with the lowest penetration levels of HSAs - below 2 percent - are New York, New Jersey, Rhode Island, Hawaii and Vermont.
"Clearly, there are states that have welcomed HSAs and others that are still fighting consumer-directed health care offerings," said JoAnn Laing, president and chief executive officer of Ridgefield, N.J.-based ISI. "In some states, the regulatory bodies have made it easier to offer HSAs, while in others, such as New Jersey, the insurance commission has not moved as quickly.
Information Strategies, Inc. focuses on providing information on and to the health care and small- and medium-size business arenas.
HSAs, which are personal savings accounts for health care costs, typically have relatively low premiums, but high deductibles. For a recent point-counterpoint debate about HSAs, view the recent issue of Small Business Times.
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Milwaukee-based UMB Fund Services Inc. (UMBFS) today announced the promotion of John Zader to chief executive officer.
The announcement comes six months after Zader was hired as the division's chief operating officer. Zader will continue to oversee all client service, operations, distribution and business development. He will report to Peter deSilva, chairman of UMBFS and president and chief operating officer of UMB Financial Corp., the Kansas City, Mo.-based parent company of UMBFS.
"Since joining UMB, John has done a great job setting a clear vision for UMBFS, strengthening the leadership team, improving customer relationships and driving sales success," deSilva said. "John's extensive knowledge of the industry coupled with his strong leadership skills will serve UMBFS very well for many years to come."
Prior to his role at UMBFS, Zader was instrumental in growing the mutual fund practice for Jefferson Wells International. Zader has more than 20 years of experience servicing mutual fund companies, including a term as senior vice president and chief financial officer for U.S. Bancorp Fund Services, where he was responsible for fund accounting, finance, operations and systems.
UMBFS, which employs about 150 people in Milwaukee, offers a line of products and services to the mutual fund operations industry, including administration and fund accounting, alternative investment services, investor services and transfer agency, marketing and distribution, custody and cash management.

Jefferson Wells, a rapidly growing, global provider of accounting and finance-related services, announced that Michael Touhey has been named president and chief operating officer of the company.
Prior to joining Brookfield-based Jefferson Wells, Touhey served as Right Management's executive vice president of the Americas, where he was responsible for the strategy and execution of the company's vision in the North and South American markets. Right Management and Jefferson Wells are independently operating, wholly-owned subsidiaries of Glendale-based Manpower Inc.
"Mike joined Right Management in January of 2006 and has done an outstanding job focusing and energizing all aspects of our business across the Americas," said Owen Sullivan, chief executive officer for Jefferson Wells and Right Management. "In addition to providing strategic focus and leadership, Mike brought to Right Management a strong client commitment and a true sales discipline. He also demonstrated his ability to energize people to drive internal dedication and commitment to the growth of the business. We are excited to add Mike's experience and energy to Jefferson Wells."
In his new roles, Touhey will be responsible for overseeing all operations for the firm's national and international offices. He will be responsible for executing Jefferson Wells' business plans and to continue to provide a wide variety of high-value consulting services to meet the needs of financial management in companies across the globe.
"Jefferson Wells has established itself as a global leader and is a strong subsidiary and asset to Manpower," Touhey said. "I am thrilled to be joining such a reputable organization and eager to continue building upon the outstanding reputation it has established in its national as well as international markets."

Journal Community Publishing Group, a subsidiary of Milwaukee-based Journal Communications Inc., announced today that it has signed a definitive agreement to sell the assets of the Louisiana Publishing Group to Target Media Partners.
The assets include three vehicle photographic publications, a general merchandise shopper and two companion Web sites. Financial terms of the transaction were not disclosed.
The parties anticipate closing the transaction "as expeditiously" as possible.
"We made the strategic decision to sell our Louisiana-based publishing operations to more closely focus our community newspaper and shopper clusters in areas where we either currently have, or can create, a deep media offering," said Elizabeth (Betsy) Brenner, president and chief operating officer of Journal Communications' publishing group.
"Target Media is delighted to welcome the entire team at News on Wheels, Steals 'n Deals and Photo Seller, and all their readers and advertisers, to our current family of 77 publications and 40 targeted websites," said Jim Sington, executive vice president of Target Media. "Each month we reach more than 5 million targeted readers, and we look forward to continued growth for these great newly added publications in their rebounding markets."
Journal Communications is the parent company of the Milwaukee Journal Sentinel, WTMJ Channel 4, AM-620 WTMJ and WKTI-94.5 in Milwaukee, in addition to other media outlets.

Oconomowoc-based Vector Surgical won the life science award and the grand prize at the Governor's Business Plan contest after finishes near the top in the previous two years of the competition. .
The award, announced Tuesday night at the Wisconsin Entrepreneurs' Conference at the Hyatt Hotel in Milwaukee, was worth $50,000 in cash and in-kind services. The conference continues today and has attracted more than 400 attendees for panels, networking and speakers. To read more, visit WisBusiness.com, a media partner of SBT.

The Dane County housing market remains weak, and its toxic effects are spilling over into the local banking sector. Read more in SBT's daily roundup of headlines from newspapers around the state at www.biztimes.com.

Robert W. Baird & Co. Inc. is expanding its presence in Waukesha County by consolidating three wealth management offices into one large office in Pewaukee. Read more in this week's Small Business Times.

If you apply real-world accounting practices to the state's budget, the truth is that the state has a deficit of more than $2.15 billion, and relative to population, Wisconsin has the largest deficit in the nation, according to Todd Berry, author of today's Milwaukee Biz Blog.

The BizTimes Stock Index dropped 2.39 points to close at 193.07 Tuesday, but local stocks bounced back to recover some of that lost ground in early morning trading today. The largest local gainers this morning were Johnson Controls Inc. (up $1.48 to $110.03) and Harley-Davidson Inc. (up $1.21 to $60.16). The largest local decliners this morning were MGIC Investment Corp. (down $1.03 to $60.58) and Bucyrus International Inc. (down 66 cents to $67.79). The BizTimes Stock Index was created by Small Business Times and is monitored by North Shore Bank. The index, which measures the stock values of publicly held companies based in southeastern Wisconsin, is updated daily and can be viewed at www.biztimes.com.