A U.S. automaker recently announced plans to expand production capacity in Michigan which will include electrifying key brands.
Fiat Chrysler Automobiles (FCA) confirmed plans to invest a total of $4.5 billion in five of its existing Michigan plants and to work with the city of Detroit and state of Michigan on building a new assembly plant within city limits.
FCA has committed to invest in expanding Jeep® and Ram brands, enabling electrification of new Jeep models, converting the Mack Avenue Engine Complex into manufacturing site for next-generation Jeep Grand Cherokee and a new full-size Jeep SUV. In addition, FCA looks to retool and modernize the Jefferson North plant for continued production of Dodge Durango and next-generation Jeep Grand Cherokee and increase production of all-new Jeep Wagoneer and Grand Wagoneer as well as continued assembly of Ram 1500 Classic. All three assembly sites would also produce plug-in hybrid versions of their respective Jeep models with flexibility to build fully battery electric models in the future.
Other than plans for vehicle production, FCA will support additional operations at Sterling Stamping and Warren Stamping plants and relocate Pentastar engine production currently at Mack I to the Dundee Engine Plant.
The plant actions detailed in the announcement represent the next steps in a U.S. manufacturing realignment FCA began in 2016. In response to a shift in consumer demand toward SUVs and trucks, the company discontinued compact car production.
“Three years ago, FCA set a course to grow our profitability based on the strength of the Jeep and Ram brands by realigning our U.S. manufacturing operations,” said Mike Manley, Chief Executive Officer, FCA N.V. “[This] 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.”
