Fiat Chrysler To Expand In Michigan, Build New Detroit Plant For Jeep, Ram, Hybrids

Fiat Chrysler Automobiles NV FCAU plans to rehab an old facility into a new Jeep plant in Detroit and pour money into five other Michigan factories in a $4.5-billion move to meet growing demand for Jeeps, Dodge Rams and electric vehicles, the company said Tuesday.

The move will create nearly 6,500 new jobs in Michigan and bring the first new auto plant since 1991 to the Motor City, according to Fiat Chrysler. 

In a statement, Fiat CEO Mike Manley said the move will allow Jeep to focus on vehicles with higher margin opportunities for the company, such as larger, three-row SUVs, as well as new electric Jeeps — including at least four plug-in hybrid vehicles.

FCA plans to convert two plants at Detroit’s Mack Avenue Engine Complex to an assembly plant for the new Jeep Grand Cherokee and a new large, three-row SUV, and plug-in hybrid models, contingent on the company being able to acquire land.

The project, in the works since late last year, also depends on an agreement being reached on incentive packages with Detroit and three suburbs, as well as the state of Michigan.

The “reborn” Mack plant will be the first new assembly plant in Detroit since the early 1990s. That last facility, known as Jefferson North, is also part of Fiat Chrysler's plans. It will be modernized for Dodge Durango and Jeep Grand Cherokee assembly, the company said.

Construction of the new Detroit facility is planned to begin by the end of the second quarter of 2019, with the first large SUVs rolling off the line by the end 2020, and new Grand Cherokees coming in early 2021. The two plants will be the only car factories located entirely within Detroit city limits.

Fiat Chrysler stock was down 0.17 percent at $14.93 at the time of publication Tuesday. 

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