FCA to Expand Production Capacity in Michigan, Electrify Jeep® Vehicles; $4.5 Billion to Build Assembly Plant in Detroit and Add Production during Five Existing Michigan Facilities, Creating Nearly 6,500 Jobs

Posted on 27. Feb, 2019 by in Chrysler Canada

February 26, 2019

, London

Fiat Chrysler Automobiles N.V. (NYSE: FCAU / MTA: FCA) reliable now skeleton to deposit a sum of $4.5 billion in 5 of a existent Michigan plants, and to work with a city of Detroit and state of Michigan on building a new public plant within city limits. The pierce would boost ability to accommodate flourishing direct for a Jeep® and Ram brands, including prolongation of dual new Jeep-branded white space products, as good as electrified models. The due projects would emanate scarcely 6,500 new jobs.

The plant actions minute in today’s proclamation paint a subsequent stairs in a U.S. prolongation realignment that FCA began in 2016. In response to a change in consumer direct toward SUVs and trucks, a Company dropped compress automobile prolongation and retooled plants in Illinois, Ohio and Michigan to make full use of accessible ability to enhance a Jeep and Ram brands. Those actions have resulted in a new launches of a award-winning all-new Jeep Wrangler and all-new Ram 1500, and a introduction of a newest member of a Jeep family, a all-new Jeep Gladiator, during a 2018 Los Angeles Auto Show.

“Three years ago, FCA set a march to grow a profitability formed on a strength of a Jeep and Ram brands by realigning a U.S. prolongation operations,” pronounced Mike Manley, Chief Executive Officer, FCA N.V. “Today’s proclamation represents a subsequent step in that strategy. It allows Jeep to enter dual white space segments that offer poignant domain opportunities and will capacitate new electrified Jeep products, including during slightest 4 plug-in hybrid vehicles and a coherence to furnish entirely battery-electric vehicles.”

The city of Detroit has 60 days to accommodate a terms of a Memorandum of Understanding, that requires a merger of skill vicious to a execution of a Mack project. The additional investments are theme to a successful traffic and final capitulation of growth packages with a state and other internal governments.

Plant Investment Details
FCA would deposit $1.6 billion to modify a dual plants that contain a Mack Avenue Engine Complex into a destiny public site for a next-generation Jeep Grand Cherokee, as good 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 a new Detroit trickery by a finish of Q2 2019 with a initial three-row vehicles approaching to hurl off a line by a finish of 2020, followed by a all-new Grand Cherokee in a initial half of 2021.

Also as partial of this announcement, a Jefferson North Assembly Plant would accept an investment of $900 million to retool and update a trickery to build a Dodge Durango and next-generation Jeep Grand Cherokee. FCA expects to emanate 1,100 new jobs during Jefferson North.

The reborn Mack trickery would be a initial new public plant to be built in a city of Detroit in scarcely 3 decades. In 1991, Jefferson North was a final new public plant built in a city. When complete, Mack would join Jefferson North as a usually automotive public plants to be located totally within a city boundary of Detroit.

The Pentastar engines – a 3.6-, 3.2- and 3.0-liter – now built during Mack we would be relocated to a Dundee Engine Plant as partial of a $119 million investment. Pentastar prolongation during Mack we would finish by Q3 2019. Mack II has been idle given it ceased prolongation of a 3.7-liter V-6 in Sep 2012.

FCA also confirms a investment during Warren Truck to retool for prolongation of a all-new Jeep Wagoneer and Grand Wagoneer, announced in 2017, along with their electrified counterparts, would boost to $1.5 billion. Production is approaching to launch in early 2021. In further to a new Jeep models, a plant would continue building a Ram 1500 Classic, that is being extended to accommodate marketplace demand. It is approaching that 1,400 new jobs would be added. As a outcome of this investment announcement, prolongation of a all-new Ram Heavy Duty will continue during a stream plcae in Saltillo, Mexico.

To support a additional production, a Company’s Warren Stamping (Warren, Michigan) and Sterling Stamping (Sterling Heights, Michigan) plants would accept investments of $245 million and $160 million, respectively, with Sterling Stamping approaching to supplement some-more than 80 new jobs.

This investment is partial of a Company’s collateral spending devise presented in Jun 2018.

Realignment of FCA U.S. Manufacturing Operations
Over a past dual years, FCA has realigned prolongation during 4 plants in Illinois, Ohio and Michigan to boost ability for a Jeep Cherokee, Jeep Wrangler and Ram 1500 light-duty truck, and combined additional prolongation ability for a Jeep Gladiator in Ohio.

The investments included: 

  • $350 million in a Belvidere Assembly Plant (Illinois) to furnish a Jeep Cherokee, that changed from Toledo, Ohio, in 2017. More than 300 new jobs were combined to support production, that launched in Jun 2017.
  • $700 million in a Toledo Assembly Complex (Ohio) to retool a North plant to furnish a next-generation Jeep Wrangler. Approximately 700 new jobs were combined to support production, that began in Dec 2017.
  • $1.48 billion in a Sterling Heights Assembly Plant (Michigan) to build a next-generation Ram 1500 truck, adding some-more than 700 new jobs. Production of a new lorry began in Mar 2018. Production of a Ram 1500 Classic continues during Warren Truck (Michigan).
  • $273 million in a south plant of a Toledo Assembly Complex to ready a trickery to furnish a all-new Jeep Gladiator. The new lorry is scheduled to launch in a initial half of 2019.  

In total, FCA has committed to deposit scarcely $14.5 billion in a U.S. prolongation operations, formulating scarcely 30,000 new jobs given Jun 2009.

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