Duggan, FCA announce land deal agreements for new 5,000-job assembly plant in Detroit

Sides approved $35 million community benefits agreement

DETROIT – Detroit Mayor Mike Duggan and officials with Fiat Chrysler Automobiles will announce Friday that agreements for land deals have been reached for a new 5,000-job assembly plant in the city.

Duggan, members of the Detroit City Council, FCA officials and members of the Neighborhood Advisory Council recently approved a $35 million community benefits agreement for the area affected by the proposed plant.

On Friday, Duggan announced a deal to secure nearly 215 acres for a new $1.6 billion FCA assembly plant on the east side.

FCA officials plan to invest $900 millino to retool and modernize the Jefferson North plant.

The total cost of the land deals comes to around $107.6 million.

"We appreciate the tireless efforts of Mayor Duggan and his administration and the Neighborhood Advisory Council to reach this important milestone," said Mark Stewart, chief operating officer for FCA in North America. "We look forward to working with City Council, state of Michigan and the Michigan Strategic Fund Board as they consider the merits of this deal, which will create thousands of good-paying, union jobs and expand our manufacturing footprint in the state and city we call home."

FCA officials asked the city to purchase the old Budd Wheel plant lot and give it to the company so it can put $2.5 billion into its neighboring Jefferson North plant.

FCA officials set a deadline of midnight Friday for Detroit officials to make a decision.

The Moroun family purchased the Budd Wheel plant in 2007, tore down the building and allowed FCA to use the site as a logistics hub for vehicles.

Under the new agreement, nearly 5,000 jobs will be created in the area. FCA officials have agreed to prioritize hiring workers from the area.

Previous coverage

About the Author: