FCA to Invest $4.5 Billion to Expand Michigan Production, Including New Detroit Plant
Plan to Grow Core Brands Includes Electrification of Jeep Vehicles, New Jeep Three-Row SUV
UPDATED May 23, 2019:
FCA North America Chief Operating Officer Mark Stewart announced that at least part of the company's planned manufacturing investment will continue as announced.
"Thanks to the strong support of Governor [Gretchen] Whitmer, the Michigan Economic Development Corporation, and city of Detroit, I am pleased to confirm that plans to invest in our Jefferson North Assembly Plant and build a new state-of-the-art assembly plant in Detroit have been given the green light," Stewart said.
Original artice from February 26, 2019 below:
Fiat Chrysler Automobiles will invest a whopping $4.5 billion in assembly, building a new plant in Detroit and adding production at five existing Michigan manufacturing facilities. According to the company, these investments should result in nearly 6,500 new jobs, with most of those workers assisting with expanding the automaker's core Jeep and Ram brands.
A large amount of the cash will be earmarked for the Mack Avenue Engine Complex in Detroit, which will receive $1.6 billion to convert it into the manufacturing facility of the next-generation Jeep Grand Cherokee and "an all-new three-row fullsize Jeep," according to FCA. The changeup will add 3,850 new jobs to the facility, a huge increase from its current employment of less than 700. The reborn Mack Avenue facility, which FCA is calling an all-new factory, will be Detroit's first new manufacturing plant since the Jefferson North Assembly Plant was built in 1991.
Jefferson North, current site of Grand Cherokee and Durango production, isn't going anywhere, with $900 million set aside to modernize the plant in preparation for the next-generation versions of those vehicles. That will bring 1,100 new jobs to the facility, up from the current 5,100 workers. It also means the Grand Cherokee will be produced in two U.S. locations when the next-generation machine arrives.
Mack Avenue currently produces FCA's 3.0L, 3.2L, and 3.6L Pentastar engines, which will migrate to the Dundee Engine Plant in Dundee, Michigan, when Pentastar production at Mack ceases by October of this year. Dundee, which currently builds the 2.4L Tigershark I-4, will receive a $119 million investment to prepare for the Pentastar.
Warren Truck Assembly in Warren, Michigan, will get a $1.5 billion divestment, which will retool the plant to produce the all-new Jeep Wagoneer and Grand Wagoneer, as well as electrified versions of each. The Wagoneer and Grand Wagoneer will launch in early 2021, with production starting in late 2020. Warren will also continue to produce the Ram 1500 Classic, whose lifecycle has been extended due to market demand.
The company's Warren Stamping and Sterling Stamping facilities will also receive investments. The Warren, Michigan, facility will receive $245 million, while the one in Sterling Heights will get $160 million. Sterling Stamping will also add more than 80 new jobs, according to FCA.
The company boasts that since 2009, it has committed to spend $14.5 billion in U.S. production, creating nearly 30,000 jobs since June of that year. A huge portion of the company's financial success can be credited to the strong-selling Jeep and Ram brands, which is why those vehicles represent the lion's share of FCA's recently announced facility upgrades and investments.
Source: Fiat Chrysler Automobiles