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FCA revs up support for the Motor City
Fiat Chrysler Automobiles has released details on its planned expanded presence in Detroit, including the first new assembly plant within the city limits in almost three decades.
A year ago, FCA announced a USD 4.5 billion investment to expand its production capacity in Michigan and further grow its core brands by producing two new Jeep-branded vehicles as well as their electrified models. Overall, FCA expects to create approximately 6,500 new jobs, with nearly 5,000 of those in Detroit.
According to a recent company statement, USD 1.6 billion is being earmarked for the two plants that comprise the Mack Avenue Engine Complex, which FCA intends to convert to an assembly site for Jeep vehicles. As part of that complex, the Mack I facility will be outfitted for general assembly and Mack II will serve as the new body shop. Work is also progressing on the newly refurbished 79,000 sq. ft. paint shop.
The Mack Complex project will create 3,850 jobs, with the first units of the three-row Jeep models expected to hit the streets by the end of 2020, followed by the new Grand Cherokee in the first half of 2021.
In addition to the Mack project, USD 900 million will go toward retooling and modernizing the Jefferson North Assembly Plant and predicts the creation of 1,100 new jobs at the site.
FCA Group CEO Mike Manley said, “Three years ago, FCA set a course to grow our profitability based on the strength of the Jeep and Ram brands by realigning our US manufacturing operations. [This] announcement represents the next step in that strategy.”
Another USD 35 million has been pledged by the City of Detroit and FCA as part of a Community Benefits Agreement, to support neighborhood improvements, housing, workforce development, education and training programs, and environmental initiatives based on community input.
The final approximately USD 2 billion will be spread among the Warren Truck, Warren Stamping, Sterling Stamping and Dundee Engine plants, with Warren Truck pulling down the biggest slice of USD 1.5 billion to retool the plant to produce the new Jeep Wagoneer and Grand Wagoneer, including the electrified versions of both, and continue production of the Ram 1500 Classic. The Warren Stamping and Sterling Stamping plants will receive more than USD 400 million to boost production. And Pentastar engines, previously produced at Mack, will be relocated to Dundee which will receive a USD 119 million investment chunk.
