Fiat Chrysler Automobiles (FCA) plans to invest $4.5 billion in five of its existing Michigan plants and build a new assembly plant in Detroit. The proposed projects would create nearly 6,500 new jobs. The investment will increase capacity to meet growing demand for the company’s Jeep and Ram brands, including production of two new Jeep-branded white-space products as well as electrified models.
FCA will invest $1.6 billion to convert the two plants that comprise the Mack Avenue Engine Complex into the future assembly site for the next-generation Jeep Grand Cherokee as well as an all-new three-row full-size Jeep SUV and plug-in hybrid (PHEV) models, adding 3,850 new jobs to support production. The company intends to start construction of the new Detroit facility by the end of the second quarter of 2019, with the first three-row vehicles expected to roll off the line by the end of 2020 followed by the all-new Grand Cherokee in the first half of 2021. The reborn Mack facility would be the first new assembly plant to be built in the city of Detroit in nearly three decades.
The Jefferson North Assembly Plant will receive an investment of $900 million to retool and modernize the facility to build the Dodge Durango and next-generation Jeep Grand Cherokee. FCA expects to create 1,100 new jobs at Jefferson North.
The Pentastar engines currently built at Mack I would be relocated to the Dundee Engine Plant as part of a $119 million investment. Pentastar production at Mack I would end by the third quarter of 2019. Mack II has been idle since it ceased production of the 3.7-liter V6 in September 2012.
The investment at Warren Truck to retool for production of the all-new Jeep Wagoneer and Grand Wagoneer, announced in 2017, will increase to $1.5 billion. Production is expected to launch in early 2021. In addition to the new Jeep models, the plant would continue building the Ram 1500 Classic, which is being extended to meet market demand. It is expected that 1,400 new jobs would be added.
To support the additional production, the FCA’s Warren Stamping and Sterling Stamping plants would receive investments of $245 million and $160 million, respectively, with Sterling Stamping expected to add more than 80 new jobs.
In total, FCA has committed to invest nearly $14.5 billion in its U.S. manufacturing operations and created nearly 30,000 new jobs since June 2009.