Follow up: The impact of FCA’s investment in Michigan [Monroe News, Mich.]

Feb. 27– Feb. 27–The Dundee Engine plant is among five additional Michigan automotive facilities expected to benefit from the multibillion dollar Fiat Chrysler Automobiles (FCA) investment announced Tuesday. (See news report)

Plans to build a new assembly plant in Detroit and add production at surrounding facilities also is accounted for in the company’s $4.5 billion agenda which is expected to create nearly 6,500 jobs throughout the state.

The Mack Engine Complex and Jefferson North Assembly Plant in Detroit; the Warren Truck Assembly and Chrysler Warren Stamping Plant in Warren, and the Sterling Stamping Plant in Sterling Heights are among those slated for added production, with individual investments ranging from $400 million to $1.6 billion.

“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.”

In 2016, the company discontinued compact car production and retooled plants in Michigan, Ohio and Illinois to expand the Jeep and Ram brands, in response to a shift in consumer demand toward SUVs and trucks.

Officials said Tuesday’s announcement was the next step in the company’s U.S. industrialization plan to further expand Jeep and Ram.

In Detroit, FCA intends to invest $1.6 billion to convert the two plants that comprise the Mack Avenue Engine Complex into the future assembly site for the next generation Jeep Grand Cherokee and a new three-row fullsize Jeep SUV with plug-in hybrid models. It’s expected to create 3,850 jobs.

Officials said the first three-row vehicles would be expected to roll of the line at the new plant by the end of 2020, and the new Grand Cherokee by 2021.

The reborn Mack facility would be the first new assembly plant to be built in Detroit in nearly three decades.

At the Jefferson North Assembly Plant, a $900 million investment would go toward retooling and modernizing the facility to build the Dodge Durango and Grand Cherokee. It’s expected to create 1,100 new jobs.

The Warren Truck Assembly plant is slated to receive $1.5 billion for the production of the new Jeep Wagoneer and Grand Wagoneer. Production is expected to begin in early 2021, including the creation of 1,400 jobs.

The company’s Warren and Sterling stamping plants would receive respective investments of $245 million and $160 million. About 80 new jobs are expected at Sterling.

Officials said the City of Detroit has 60 days to meet the terms of a Memorandum of Understanding which requires the acquisition of property for the Mack project.

The additional investments are subject to successful negotiation and final approval of development packages with the state and other local governments.


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