In a $4.5-billion move designed to meet growing demand for Jeeps, Dodge Rams and electric vehicles, Fiat Chrysler Automobiles plans to turn an old jeep facility into a new Jeep plant in Detroit, as well as investing in five other Michigan factories. The revamp is expected to create nearly 6,500 new jobs.
The new Jeep plant will focus on vehicles with higher margin opportunities for the company, such as larger, three-row SUVs, as well as new electric Jeeps, including at least four plug-in hybrid vehicles.
Fiat also plans to open two more assembly plants at Detroit’s Mack Avenue Engine Complex for the new Jeep Grand Cherokee and a new large, three-row SUV, and plug-in hybrid models. This plan is, however, subject to land acquisition as well as an agreement on incentive packages with Detroit and three suburb. The state of Michigan must also approve.
The “reborn” Mack plant will be the first new assembly plant in Detroit since the early 1990s. The construction is planned to begin by the end of the second quarter of 2019, with the first large SUVs reaching customers by the end of 2020, and new Grand Cherokees coming in early 2021.