FCA Seeks $160 Million in Aid for Detroit Plant Projects

Fiat Chrysler Automobiles NV says it is angling for $160 million in state and local tax breaks and other incentives to help pay for a $2.5 billion overhaul of two factories in metro Detroit.

FCA announced in February it intends to spend $1.6 billion to convert its Mack Avenue engine factory (pictured) into an assembly plant to make next-generation Jeep Grand Cherokee SUVs and an all-new large Jeep model about two years from now.

The project would add the first new assembly plant within Detroit’s city limits since Chrysler opened the Jefferson Avenue plant in 1991. FCA also proposes to spend $900 million to add Grand Cherokee capacity to the Jefferson Avenue complex.

FCA says both updated facilities would be able to make electrified versions of the new models being added. The programs will create 6,000 jobs in three years, according to the company.