Fiat Chrysler Invests USD 4.5 Billion in Detroit Assembly Plant

Fiat Chrysler Automobiles (NYSE: FCAU)  confirmed a USD 4.5 Billion investment plan for a new assembly plant in Detroit. The investment is building all-new or next-generation SUVs and is expected to add 6,500 jobs in Detroit and surrounding suburbs.

The major production expansion for Fiat Chryslers next-generation Jeep Grand Cherokee will be adding a new assembly plant in Detroit, while also increasing production at five existing factories. The automaker has been openly discussing their Jeep production expansion over the past months, along with outlining plans to transition the idled engine plant in Detroit into a full-time final assembly plant. The move would increase capacity to meet the growing demand for its Jeep and Ram brands.

It’s going to cost Fiat Chrysler USD 1.6 Billion to transform the Mack Avenue Engine Complex into the desired final assembly plant for the next generation Jeep and an all-new three-row, full-size Jeep Suv. The new plant will be the first of its kind in Detroit since 1991 and the move is predicted to bring in 3,850 jobs to the city.  The Company also expects to add 1,100 new jobs at its Jefferson North Assembly plant, and around 1,500 jobs at the nearby suburb of Warren.

Fiat Chrysler plans to add two all-new Jeep models including the Wagoneer and Grand Wagoneer. The Company believes the new models will diversify the brand’s portfolio specifically where they lack in the larger SUV segment. Included in the Company’s expansion plans Fiat Chrysler added that they will start producing plug-in hybrid and fully electric versions of Jeep models.  

The Company’s investments are subject to tax incentive packages and Fiat would have to acquire property for the project. If all deals are approved construction in Detroit should start later this year and the new next-generation Jeep could be in production by the end of 2020.

“Three years ago, FCA set a course to grow our profitability based on the strength of the Jeep and Ram brands by realigning our U.S. manufacturing operations,” said Mike Manley, Chief Executive Officer, FCA N.V. “Today’s announcement represents the next step in that strategy. It allows Jeep to enter two white PRESS RELEASE space segments that offer significant margin opportunities and will enable new electrified Jeep products, including at least four plug-in hybrid vehicles and the flexibility to produce fully battery electric vehicles.”

1 Comment
  1. Phil LeBeau 3 months ago
    Reply

    Just hours after $FCAU says it will add 6,500 jobs in Detroit area to expand Jeep production, the company says it will layoff 1,371 workers at its plant outside Rockford, Illinois as it cuts a shift at plant building the Jeep Cherokee.

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