FCA US to invest $1B in Michigan, Ohio plants

Jan. 9, 2017 – FCA US has confirmed the next phase of its industrialization plan by announcing a $1-billion investment in plants in Michigan and Ohio, and the addition of 2,000 new American jobs, which it says will “further demonstrate its commitment to strengthening its U.S. manufacturing base, and aligning U.S. capacity to extend the Jeep product lineup.”

The announcement is the second phase of an industrialization plan announced in January 2016, and is a “continuation of the efforts already underway to increase production capacity in the U.S. on trucks and SUVs to match demand

With the investment, FCA US says it plans to retool and modernize the Warren Truck Assembly Plant (Michigan) to produce the Jeep Wagoneer and Grand Wagoneer, and the south plant of the Toledo Assembly Complex (Ohio) to build a Jeep pickup truck. These actions are planned to be completed by 2020. More than 2,000 jobs also will be added to support production of these models. The added benefit of the investment in Warren is that it will enable 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, CEO of FCA N.V. “These moves, which have been under discussion with Dennis Williams and the rest of the UAW leadership for some time, expand our capacity in these key segments, enabling us to meet growing demand here in the U.S., but more importantly to increase exports of our mid-size and larger vehicles to international markets.

SOURCE FCA US