On Tuesday, Fiat Chrysler Automobiles (FCA) announced their plans to move forward with a 4.5-billion-dollar plan to bring Jeep’s newest auto production plant to Detroit. The new Jeep focused plant is set to take over the Mack Avenue Engine
The new assembly plant will be the first to open in the Detroit area since 1991 with plans to increase workforce by approximately 6,500 jobs. Motor City, once home to over a dozen production plants, has felt the heavy impact of decline with unemployment rates reaching up to 29% in the past 10 years. The FCA believes that with the arrival of the next generation Jeep models, average workforce will double with the average wage reaching up to $58,000 a year.
The 4.5-million-dollar plan, set to launch in late 2019, has also invested of 4 other Michigan plant locations. Besides the expansion of building the new location with 3,850 new jobs, Chrysler is expected to add another 1,100 jobs at the current Jefferson North Assembly plan and 1,500 new jobs at neighboring facilities in Warren.
The first component of FCA’s new plan consists of proving 1.6 billion to convert the Mack Avenue Engine assembly site before making a 900 million upgrade to their Jefferson North Assembly Plant to support the production of Jeep Grand Cherokee and Dodge Durango in late 2020.
To support additional production, the FCA has also confirmed their 1.5-billion-dollar plan in early 2021 to regenerate their Warren truck plant (known for the production of Ram 1500) and investments of $245 million and $160 million to their stamping plants in Warren and Sterling Heights, adding approximately 80 more positions to their roster.