DETROIT – Fiat Chrysler said Tuesday it was considering building a new assembly plant in Detroit and investing $ 4.5 billion in five of its existing plants in Michigan.
The proposed projects would create nearly 6,500 new jobs and meet the growing demand for its Jeep and Ram brands, said FCA officials.
The move includes the planned production of two new Jeep white space products and electrified models, officials said the FCA.
Tuesday's announcement is the last step of a realignment that FCA began in 2016. As customer demand turned to SUVs and trucks, the company stopped producing cars and retooled its factories from Michigan, Illinois and Ohio to develop the Jeep and Ram brands.
"Three years ago, FCA was preparing to increase our profitability based on the strength of the Jeep and Ram brands by realigning our manufacturing operations in the United States," said Mike Manley, CEO of FCA NV. "Today's announcement is the next step in this strategy, allowing Jeep to enter two white space segments with significant margin opportunities and to create new electrified Jeep products, including at least four plug-in hybrid vehicles and the flexibility to produce full battery electric vehicles. "
Detroit officials have 60 days to comply with the terms of a memorandum of understanding that requires the acquisition of essential assets for the Mack Avenue Eingine project, officials said. Additional investments are subject to this negotiation, announced FCA officials.
The CFA would invest $ 1.6 billion to convert the Mack Avenue Engine Complex's two plants into a future assembly site for the next generation of Jeep Grand Cherokee and a three-row Jeep Grand Hybrid and Rechargeable Hybrid SUV , creating 3,850 jobs. support production, said FCA officials.
The company plans to begin construction of the new Detroit facility by the end of the second quarter of 2019, with the first three-row vehicles to be retired by the end of 2020 and the new Grand Cherokee in the first half of 2021 .
The North Assembly Plant would receive a $ 900 million investment to reorganize and modernize the construction facilities of the Dodge Durango and the next generation Jeep Grand Cherokee, which would create 1,100 new jobs at the same time. factory, announced the FCA officials.
The new Mack plant would be the first new assembly plant built in Detroit in nearly three decades, officials said.
Here's a statement from the Macomb County Executive, Mark Hackel:
"Once again, Macomb County is at the epicenter of the evolution of the auto industry. FCA's announcement of a $ 1.9 billion investment and the creation of nearly 1,500 new jobs at Warren Truck, Warren Stamping and Sterling Stamping illustrates the company's strategy for the future. It also demonstrates the capabilities of our talented workforce, who will now be responsible for designing exciting new products and advancing technology and automotive capabilities. Thanks Mike Manley, FCA and their talented staff for having believed in Michigan. "
Here's a statement from UAW Vice President, Cindy Estrada:
"I see today's investment as a reward for the efforts of our members and a mark of confidence that UAW members are the best auto workers in the world. This is all the more exciting as these are good unionized jobs with wages and union benefits collectively negotiated with the company. We are also looking forward to working with FCA, the City of Detroit and other community leaders to reach a community benefits agreement that redefines our city and enables our citizens to create sustainable and sustainable communities. long term.. "
Here's a statement from Congressman Paul Mitchell:
"I was delighted to learn that Fiat Chrysler Automobiles (FCA) was planning to invest more in its manufacturing operations in Michigan, including the Sterling Stamping Factory, in the 10th Congressional District of the United States. Michigan – currently the largest auto parts stamping plant. The realignment of the FCA over the past two years to build more of its new SUVs and Ram trucks in Michigan has added millions of dollars to our economy and created hundreds of high-paying jobs for my constituents. "
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