Business

Fiat Chrysler to invest $4.5B in 5 Michigan plants, create 6500 jobs


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


If Mayor Mike Duggan and his team deliver the land, a community benefits agreement, and council approval, Fiat Chrysler would bring nearly 4,000 new jobs to the city to staff the vehicle assembly line.


FCA's plans come as crosstown rival General Motors Co. is moving to idle in January its Detroit-Hamtramck Assembly plant just four miles away, to potentially close three other facilities in the United States and one in Canada as part of a sweeping North American restructuring.


But the largest contribution from the city would be the acquisition and delivery of roughly 200 acres of land to expand the new plant's parking, to provide storage for new vehicles, and to allow supplier trailers access to the site.


Community benefits agreements have been attached to several recent deals in the city, including Ford Motor Co.'s acquisition of the historic Michigan Central Depot and Ilitch Holdings Inc.'s District Detroit development.


The investments in Michigan are pieces of an effort begun by Marchionne and continued by his successor, CEO Mike Manley, to stoke already strong Jeep brand sales as well as the automaker's other trucks and SUVs.






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