DETROIT – Fiat Chrysler Automotive (FCA) announced Tuesday a plan to build a brand new Jeep plant in the city of Detroit.
The company said it will 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 as well as an all-new 3-row full-size Jeep SUV and plug-in hybrid (PHEV) models. FCA said this new plant will add 3,850 new jobs to support production.
FCA intends to start construction of the new Detroit facility by the end of 2019's second quarter with the first 3-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.
Meanwhile, FCA said the existing Jefferson North Assembly Plant in Detroit is set to receive an investment of $900 million to retool and modernize the facility to build the Dodge Durango and next generation Jeep Grand Cherokee. FCA expects to create 1,100 new jobs at Jefferson North.
The reborn Mack facility would be the first new assembly plant to be built in the city of Detroit in nearly three decades. Jefferson North was the last new assembly plant built in the city in 1991. When complete, Mack would join Jefferson North as the only automotive assembly plants to be located completely within the city limits of Detroit.
The following bullet points are from the city of Detroit's statement on this FCA plan:
- Total investment at Mack Avenue Engine and Jefferson North plants would be single largest FCA has made in the U.S. since Great Recession
- Mack Avenue Engine Complex would be converted into new vehicle assembly plant
- Mack project would be first new assembly plant built in Detroit in almost three decades, first in Michigan in 13 years and first in U.S. since 2011
- New plant, along with Jefferson North, would firmly establish FCA as the only auto company with a significant manufacturing presence in Detroit
- Deal contingent on City delivering proposed site to FCA within 60 days and negotiation of development incentives
"This opportunity is unlike anything we have seen in decades, and it’s going to be crucial that we come together in the interest of our city and our residents over the next 60 days to bring nearly 5,000 new good-paying jobs to this neighborhood," said Detroit Mayor Mike Duggan. "Over the next two months, we will be out in the neighborhoods every day working with the residents to make this happen for our city. Most importantly, we’re going to bring these 5,000 jobs to Detroit without displacing a single resident."