Fiat Chrysler investing $4.5 billion in MI production plants

FCA Mack Avenue rendering

Enlarge ImageA rendering of how the Mack Avenue facility will look after the conversion process. FCA

FCA said it plans to invest in five of its existing MI plants, and to work with the city of Detroit and state of MI on building a new assembly plant within city limits.

The plant will continue with the remaining 3,760 workers. FCA plans to commence construction at this site in the second quarter of 2019 before production starts by the end of 2020.

The automaker confirmed plans Tuesday to revive a previously idled engine plant on the city's east side as part of a $4.5 billion investment in five MI plants. The city of Detroit has 60 days to assemble 200 acres (80 hectares) of land critical to the execution of the Mack project. Thank you Fiat Chrysler. "If the tariffs on imported autos are imposed, it will help FCA's Jeep and Ram further increase sales and market share, benefitting the MI economy and creating even more good paying jobs".

The $4.5 billion will be spread across five FCA production sites, and, the Mack Avenue Engine Complex will receive $1.6 billion.

The plans also include a $900 million investment to modernize and retool another Detroit plant to make the Dodge Durango and Jeep Grand Cherokee.

The investment will also have a ripple effect, boosting the automotive industry and helping other non-auto businesses elsewhere in MI and other Midwest states, Whitmer said.

As you can probably guess, the investments are aimed toward expanding pickup truck and SUV production.

At a news conference Tuesday with Detroit Mayor Mike Duggan and other officials, Whitmer applauded the automaker for "taking a great bet" on the state.

Strings attachedHowever, there are various conditions attached to the proposed investment, which is detailed in a memorandum of understanding (MoU) signed between the company and Detroit's city council.

The vehicle manufacturer will initially invest $1.6 billion to convert two plants at the Mack Avenue Engine Complex to become the future assembly site for the next-generation Jeep Grand Cherokee, various plug-in hybrid models, and a new three-row full-size Jeep SUV. For the automaker, she said, it's akin to "investing with friends in MI they know very well".

Fiat Chrysler subtracts from its business taxes certain amounts for each job it adds or keeps in the state, with higher deductions for higher-paying jobs.

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