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New Fiat Chrysler Detroit plant, and Michigan investments to create 6,500 new jobs

Posted: 11:36 AM, Feb 26, 2019
Updated: 2019-02-27 02:04:47Z
Sources: EPA to allege FCA cheated on emissions

DETROIT (WXYZ) — Fiat Chrysler announced Tuesday it will build a new assembly plant in Detroit, along with investing in five existing Michigan plants.

The move will create 6,500 new jobs.

The total investment in the Michigan plants has reached $4.5 billion, according to a press release.

Fiat Chrysler says the new investments are aimed at increasing capacity to meet the growing demand for trucks and SUVS, focusing on its Jeep and Ram brands.

The new plant will be built within the Detroit city limits.

Detroit Mayor Mike Duggan, Governor Gretchen Whitmer and Wayne County Executive Warren Evans have called a press conference today at noon to talk about a historic job announcement for Detroit.

It’s speculated that they will announce the new Fiat Chrysler plant built within the city walls of Detroit.

"Three years ago, FCA set a course to grow our profitability based on the strength of the Jeep and Ram brands by realigning our U.S. manufacturing operations,” said Mike Manley, Chief Executive Officer, FCA N.V. “Today’s announcement represents the next step in that strategy. It allows Jeep to enter two white space segments that offer significant margin opportunities and will enable new electrified Jeep products, including at least four plug-in hybrid vehicles and the flexibility to produce fully battery electric vehicles.”

“I look at today’s investment as a reward for the efforts of our membership and a show of confidence that the members of the UAW are the best auto workers in the world," said UAW Vice President Cindy Estrada. "This is especially exciting given that these are good union jobs with union wages and benefits that have been collectively bargained for with the company. We also look forward to collaborating with FCA, the City of Detroit and other community leaders on a Community Benefits Agreement that re-imagines our city and empowers our citizens to create sustainable communities with long term viability.”

KEY POINTS:

* Investment would be next step in Company’s U.S. industrialization plan, announced in 2016 to expand Jeep® and Ram brands

* Introduces two new Jeep branded “white space” products in key market segments

* Enables electrification of new Jeep models

* $1.6 billion investment would convert Mack Avenue Engine Complex into manufacturing site for next generation Jeep Grand Cherokee and an all-new 3-row full-size Jeep SUV, creating 3,850 new jobs

* $900 million investment at Jefferson North to retool and modernize plant for continued production of Dodge Durango and next generation Jeep Grand Cherokee with 1,100 new jobs expected

* Warren Truck 2017 investment increases to $1.5 billion for production of all-new Jeep Wagoneer and Grand Wagoneer as well as continued assembly of Ram 1500 Classic with addition of 1,400 new jobs

* All three assembly sites would also produce plug-in hybrid versions of their respective Jeep models with flexibility to build fully battery electric models in the future

* Sterling Stamping and Warren Stamping plants to receive more than $400 million total investment to support additional production, potentially creating about 80 new jobs at Sterling

* $119 million investment to relocate Pentastar engine production currently at Mack I to the Dundee Engine Plant; production at Mack would end by Q3 2019

* Projects contingent on land acquisition and the negotiation of development incentives with the cities of Detroit, Sterling Heights, Warren, Dundee and state of Michigan

* City of Detroit has 60 days to deliver on commitments outlined in Memorandum of Understanding related to Mack and Jefferson North projects