Fiat Chrysler Plans To Invest $4.5 Bln In U.S., Create About 6,500 New Jobs

(RTTNews) - Fiat Chrysler Automobiles N.V. (FCAU) confirmed plans to invest a total of $4.5 billion in five of its existing Michigan plants, and to work with the city of Detroit and state of Michigan on building a new assembly plant within city limits.

The company said the move would increase capacity to meet growing demand for its Jeep and Ram brands, including production of two new Jeep branded white space products as well as electrified models. The proposed projects would create nearly 6,500 new jobs.

The company noted that it would 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 3-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 Q2 2019 with the first 3-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.

Also as part of this announcement, the Jefferson North Assembly Plant would 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 reborn Mack facility would be the first new assembly plant to be built in the city of Detroit in nearly three decades. Jefferson North was the last new assembly plant built in the city in 1991. When complete, Mack would join Jefferson North as the only automotive assembly plants to be located completely within the city limits of Detroit.

The Pentastar engines - the 3.6-, 3.2- and 3.0-liter - 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.

FCA also confirms the investment at Warren Truck to retool for production of the all-new Jeep Wagoneer and Grand Wagoneer, announced in 2017, along with their electrified counterparts, would 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. As a result of this investment announcement, production of the all-new Ram Heavy Duty will continue at its current location in Saltillo, Mexico.

To support the additional production, the Company's Warren Stamping (Warren, Mich.) and Sterling Stamping (Sterling Heights, Mich.) 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.