FCA Plans New Assembly Plant in Detroit

Fiat Chrysler Automobiles NV intends to invest $4.5 billion to upgrade five factories in Michigan and add a new assembly plant within the city limits of Detroit.

The investments will lead to more than 6,000 jobs over the 2-3 years, according to the company.

FCA says it aims to spend $1.6 billion to convert its Mack Avenue Engine plant into a facility to make next-generation Jeep Grand Cherokee SUVs and an all-new large Jeep model. The project would mark the first new auto assembly plant in Detroit since FCA opened the Jefferson North Assembly Plant in 1991.

The company also will spend $900 million to upgrade Jefferson North. The retooled facility will add the next-generation Jeep Grand Cherokee SUV and continue to make Dodge Durango SUVs.

FCA is expanding a previously announced investment in its Warren Truck plant near Detroit by nearly $800 million to build the all-new Jeep Wagoneer and Grand Wagoneer large SUVs. The facility will continue to make Ram 1500 Classic fullsize pickup trucks.

All three assembly plants will be capable of making electrified versions of the piston-powered vehicles they build.

In addition, FCA says it will invest $405 million to boost capacity for Detroit-area stamping plants in Warren and Sterling Heights. Another $119 million has been earmarked to relocate production of V-6 Pentastar engines from the Mack Avenue plant to FCA’s factory in Dundee, Mich., this autumn.

FCA says the expansions all hinge upon state and local development incentives and city assistance in acquiring necessary land, including 200 acres within 60 days in Detroit.