The expansion will be applicable to FCA's five current production units, along with the development of a new facility in Detroit, with a focus to shift to new models and the electrification of future Jeep models.
Fiat Chrysler Automobiles (FCA) has revealed its plan to expand production in the state of Michigan. The investment amount, pegged at USD 4.5 billion, will be spent on five existing manufacturing facilities in Michigan, United States, along with the development of a new facility in Detroit. With the expansion in full swing, it is likely to create nearly 6,500 new jobs. The move will not only allow FCA to meet the growing demand for its Jeep and RAM brands, but it will also pave the way for the electrification of Jeep models in the near future.
'Three years ago, FCA set a course to grow its profitability based on the strength of the Jeep and Ram brands by realigning its U.S. manufacturing operations,' said Mike Manley, Chief Executive Officer of the FCA. '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,' he added.
Of the total investment amount, USD 1.6 billion will be spent to convert the two plants that comprise the Mack Avenue Engine Complex into the future assembly site for the next-generation Jeep Grand Cherokee, as well as an all-new three-row full-size Jeep SUV and plug-in hybrid (PHEV) models. The revamp of these two plants will add up to 3,850 new jobs to support production.
The Company intends to start construction of the new Detroit facility by the end of Q2 2019, with the first three-row vehicles expected to roll off the line by the end of 2020, followed by the all-new Grand Cherokee in the first half of 2021.