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Fiat Chrysler Plans Major Assembly Plant Expansions in Detroit, Michigan Region

02/27/2019
FCA has announced that they will invest $4.5 billion to build a new assembly plant in Detroit and add production at five existing facility in Michigan. The company plans to create nearly 6,500 jobs.

According to Company officials, Fiat Chrysler plans to expand production capacity to Grow Core Brands and electrify Jeep vehicles. Investment would be next step in Company’s U.S. industrialization plan, announced in 2016 to expand Jeep and Ram brands.

A $1.6 billion investment would convert Mack Avenue Engine Complex into manufacturing site for next generation Jeep Grand Cherokee and an all-new 3-row full-size Jeep SUV, creating 3,850 new jobs, while a $900 million investment at Jefferson North to retool and modernize plant will provide for continued production of Dodge Durango and next generation Jeep Grand Cherokee with 1,100 new jobs expected.

In addition the firm will increase its Warren Truck 2017 investment to $1.5 billion for production of all-new Jeep Wagoneer and Grand Wagoneer as well as continued assembly of Ram 1500 Classic with addition of 1,400 new jobs.

“All three assembly sites would also produce plug-in hybrid versions of their respective Jeep models with flexibility to build fully battery electric models in the future,” company officials said.

Sterling Stamping and Warren Stamping plants will receive more than $400 million total investment to support additional production, potentially creating about 80 new jobs at Sterling. The company will also undertake a $119 million investment to relocate Pentastar engine production currently at Mack I to the Dundee Engine Plant; production at Mack would end by the third quarter of 2019.

Officials noted “Projects are contingent on land acquisition and the negotiation of development incentives with the cities of Detroit, Sterling Heights, Warren, Dundee and state of Michigan. The City of Detroit has 60 days to deliver on commitments outlined in Memorandum of Understanding related to Mack and Jefferson North projects Fiat Chrysler Automobiles N.V.

“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, CEO, FCA N.V. “Today’s announcement represents the next step in that strategy. It allows Jeep to enter two 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.”

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