AUTO INDUSTRY NEWS

FCA invests $1B in Michigan, Ohio plants, Wagoneer on the way

FCA invests $1B in Michigan, Ohio plants, Wagoneer on the way image

Nica Onate / Fiat Chrysler Automobiles | January 11, 2017 11:55

FCA invests $1 billion in Michigan and Ohio plants, will create 2,000 new jobs

Fiat Chrysler Automobiles (FCA US) recently confirmed the next phase of its industrialization plan by announcing a $1 billion investment at their Michigan and Ohio plants as well as an additional 2,000 new American jobs.

In line with the company's plan to extend the Jeep product lineup, FCA US has invested more than $9.6 billion in its U.S. manufacturing facilties and created at least 25,000 new jobs since 2009.

Meanwhile, the action serves as the second phase of an industrialization plan announced back in January 2016, which is about the realignment of the company’s U.S. manufacturing operations. With this, FCA US claims that it will fully utilize available capacity and respond to a shift in market demand for trucks and SUVs, and to further expand the Jeep and Ram brands.

With the $1 billion investment, FCA US will refurnish the Warren Truck Assembly Plant in Michigan to produce the all-new Jeep Wagoneer and Grand Wagoneer, and the south plant of the Tolefo Assembly Complex in Ohio to build an all-new Jeep pickup truck which will likely be the Wrangler pickup we've been seeing from our insiders.

FCA invests $1B in Michigan, Ohio plants, Wagoneer on the way

The company said that these actions are expected to be done by 2020. Also, the added benefit of the investment in Warren allows the plant to produce the Ram heavy duty truck, which is currently produced in Mexico.

“The conversion of our industrial footprint completes this stage of our transformation as we respond to the shift in consumer tastes to trucks and SUVs, and as we continue to reinforce the U.S. as a global manufacturing hub for those vehicles at the heart of the SUV and truck market,” said Sergio Marchionne, Chief Executive Officer of FCA N.V.
 
“The expansion of our Jeep lineup has been and continues to be the key pillar of our strategy. Our commitment to internationalize the Jeep brand is unwavering, and with these last moves, we will finally have the capacity to successfully penetrate markets other than the U.S. which have historically been denied product due to capacity constraints. In addition, these all-new products will reach new consumers, as well as those that have been part of the Jeep tradition,” added Marchionne.

However, the actions announced are still subject to the negotiation and final approval of incentives by both the state and local entities.