Fiat Chrysler Receives Tax Incentives in Michigan for Projects to Create 6,400 Jobs

Fiat Chrysler Automobiles will continue its major investment projects in Michigan and will create nearly 6,500 jobs after the Michigan Strategic Fund board on Tuesday approved financial incentives for the company.

The company's plans include a new assembly plant in Detroit and investments and upgrades to existing facilities in the Greater Detroit area, all designed to help the company increase production of its popular Jeep and RAM brands.

"This investment will increase our production capacity for these growing brands," Christine Estereicher, head of government and local affairs at FCA US, told the board on Tuesday.

The board unanimously approved:

– For Warren's truck assembly plant, a $ 21 million exemption on the assessment of essential services, with a term of 15 years, and a withholding tax of 39%. worth $ 6 million, Good Jobs for Michigan. This is expected to create 1,400 new jobs and generate $ 963 million in investments.

– For Warren's stamping plant, an exemption of $ 692,928 over five years for essential state services. This should generate investments of $ 236 million.

– For the Sterling Stamping Sterling Heights plant, a five-year exemption from the US $ 180,900 essential services valuation. This should result in the creation of 83 new jobs and an investment of $ 169 million.

– For the Jefferson North Assembly Plant and Detroit Mack Engine Plant, a $ 10 million Michigan Enterprise Development Program Grant, a positive impact payroll deduction in Michigan for up to 99 years, essential state services for 15 years An exemption from evaluation of up to $ 13,456,976 and an exemption from the assessment of essential services of the state. State of 15 years worth up to $ 18 million. The company is expected to invest $ 901 million and create 1,100 new jobs at the Jefferson North assembly plant, as well as $ 1.6 billion and create 3,850 jobs.

The company's first move will be in Detroit's new plants, where it plans to build the next-generation Jeep Grand Cherokee and a brand new three-row Jeep SUV.

"The construction should start immediately, if you approve that. Our construction teams are ready to go, "Estereicher told the board of directors before approval.

The FCA expects vehicles to start coming out of the new Detroit line by the end of 2020, Estereicher said.

The company has considered sites in Illinois and Mexico, said Estereicher, but has settled in Michigan.

"We give priority to Michigan and Detroit. This is our home, we are very proud of it, "said CFA Chief Operating Officer Mark Stewart at a news conference hosted by Governor Gretchen Whitmer after approval. .

Whitmer applauded the investment, pointing out that it was the largest private investment of automakers in the United States in the last decade.

"It is good that the state that put the world on wheels is also the one where we will build the cars of the future," she said.

She cited Michigan's place in the "mobility" industry, including autonomous vehicles. FCA's investment also strengthens the company's ability to produce electric and hybrid cars.

Asked about state spending on incentives, Whitmer cited derived jobs and encouraged investments.

"The incredible multiplier effect that will happen for our state will go well beyond any initial investment," Whitmer said.

Lt. Gov. Garlin Gilchrist II, from Detroit, said Detroit had helped the world ride, and that the dead of some of the original car workers could work in this factory.

"We are ready to work to build the future, again, in the Automotive City," Gilchrist said.

Macomb County Executive Mark Hackel said the investment proved that Southeastern Michigan had a talented workforce and that the project was giving the region the opportunity to "bring back this dynamism in manufacturing".

Stewart said the jobs created would have an average salary in the range of $ 50,000. "We will have jobs at all levels," he said, including factory managers and skilled trades positions.