Chrysler Canada

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

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.