A multi-billion dollar investment by Fiat Chrysler Automobiles (FCA) will bring a new Jeep plant and 6,500 jobs to Detroit.
The announcement was made on Tuesday morning. FCA said it plans to convert the Mack Avenue engine plants to a new $1.6 billion assembly plant for the next generation Jeep Grand Cherokee.
The City of Detroit now has 60 days to obtain property required for the Mack Avenue plant. They must also begin the Community Benefits Ordinance process in the neighbourhood to proactively engage with the community, identify community benefits and address potential development impacts.
“Over the next two months, we will be out in the neighbourhood every day working with the residents to make this happen for our city. Most importantly, we’re going to bring these 5,000 jobs to Detroit without displacing a single resident,” said Mayor Mike Duggan.
If all goes as planned, construction will begin on the Jeep plant in mid-2019 with vehicle production starting near the end of 2020.
The new assembly plant will be the first one built in Detroit since 1991. According to a post on The City of Detroit's Twitter, there have only been four automotive plants built in the United States within the last ten years.
“This is incredible news for Michigan’s economy, our families, and the future of our state,” said Governor Gretchen Whitmer. “Today’s announcement signals the strong bet FCA is making on our talent and manufacturing heritage that will continue to cement Michigan’s status as the home of automotive innovation for generations to come."
In addition to the new Jeep assembly plant, FCA will also be adding production at and retooling five existing plants in the Michigan area including the Jefferson North Assembly Plant which will see a $900 million investment.
