Made in the USA: Fiat Chrysler to Spend $4.5 Bil. to Build in Detroit, Expand Other Michigan Facilities

Nick Kangadis | February 26, 2019
Font Size

It looks like automotive manufacturing is going to be making a comeback in Michigan judging by Fiat Chrysler’s latest move.

The automotive giant will reportedly spend $4.5 billion to build a new production plant in Detroit, among other expansions. The additional expansions pertain to “five other Michigan facilities,” according to Fox Business.

According to The Detroit News:

The plant actions will create about 6,500 new jobs in Metro Detroit, help solve capacity problems for Fiat Chrysler in North America, and pave the way for future production of electrified Jeep SUVs.

The company said Tuesday it plans to invest $1.6 billion to convert the two plants that comprise the Mack Avenue Engine Complex on the city's east side — including long-idled Mack II — into an assembly plant to build the next-generation Jeep Grand Cherokee as well as new three-row and plug-in hybrid versions of the highly profitable SUV.

“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,” Mike Manley, Chief Executive Officer, FCA N.V said in a statement. “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.”

This is good news for people in Detroit who saw the automotive exodus slowly deplete their population by more than a million people over the seven decades. At Detroit’s height, the city’s population was around 1.8 million people. In contrast, U.S. Census Bureau reported that the latest estimate has the population of Detroit at just over 673,000.

Hopefully, with Fiat Chrysler’s latest move, it will provide a template that one of America’s greatest cities could be open for business once again.