Chrysler News: FCA Expanding Michigan Production Capacity

[Drew Dowdell]

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Fiat-Chrysler announced a $4.5 billion investment today to build a new assembly plant in Detroit and add production at five existing facilities in Michigan. The move will increase capacity for Jeep, Ram, and Dodge Durango. 

• $1.6 billion will go to the Mack Avenue Engine complex to convert the site into a manufacturing facility for the next-generation Jeep Grand Cherokee and an all-new three-row full-size Jeep SUV. This will create 3,850 new jobs.
• $900 million will go to Jefferson North for retooling and modernization for production of the Dodge Durango and next generation Jeep Grand Cherokee. This will create 1,100 jobs.
• The investment into Warren Truck increases to $1.5 Billion for the production of the Jeep Wagoneer and Grand Wagoneer, plus continued production of the Ram 1500 Classic. This will create 1,400 new jobs.

In addition to the plant investments, FCA has announced that future Jeep products will be electrified.  All three facilities will be able to produce plug-in hybrid versions with fully electric model capability in the future.  

The project is contingent on land acquisition near the Mack Avenue plant.  FCA plans to move quickly and start construction on the new facility in late Q2 2019.  When complete, the facility will be the first new vehicle assembly plant built in the City of Detroit since 1991.  The Mack Ave I plant currently builds the 3.0, 3.2, and 3.6 liter Pentastar V6. That production will move to the Dundee Engine Plant. 

The plan would bring around 6,500 total jobs to the region.

FCA Press Release on Page 2

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FCA to Expand Production Capacity in Michigan to Grow Core Brands, Electrify Jeep® Vehicles

$4.5 Billion to Build New Assembly Plant in Detroit and Add Production at Five Existing Michigan Facilities, Creating Nearly 6,500 Jobs

 

• FCA total committed investments in the U.S. grow to nearly $14.5 billion since 2009, with nearly 30,000 jobs created to date
• Investment would be next step in Company’s U.S. industrialization plan, announced in 2016 to expand Jeep® and Ram brands
• Introduces two new Jeep-branded “white space” products in key market segments
• Enables electrification of new Jeep models
• $1.6 billion investment would convert Mack Avenue Engine Complex into manufacturing site for next-generation Jeep Grand Cherokee and an all-new three-row full-size Jeep SUV, creating 3,850 new jobs
• $900 million investment at Jefferson North to retool and modernize plant for continued production of Dodge Durango and next-generation Jeep Grand Cherokee with 1,100 new jobs expected
• Warren Truck 2017 investment increases to $1.5 billion for production of all-new Jeep Wagoneer and Grand Wagoneer, as well as continued assembly of Ram 1500 Classic with addition of 1,400 new jobs
• All three assembly sites would also produce plug-in hybrid versions of their respective Jeep models with flexibility to build fully battery-electric models in the future
• Sterling Stamping and Warren Stamping plants to receive more than $400 million total investment to support additional production, potentially creating about 80 new jobs at Sterling
• $119 million investment to relocate Pentastar engine production currently at Mack I to the Dundee Engine Plant; production at Mack would end by Q3 2019
• Projects contingent on land acquisition and the negotiation of development incentives with the cities of Detroit, Sterling Heights, Warren, Dundee and state of Michigan
• City of Detroit has 60 days to deliver on commitments outlined in Memorandum of Understanding related to Mack and Jefferson North projects

February 26, 2019 , London - Fiat Chrysler Automobiles N.V. (NYSE: FCAU / MTA: FCA) confirmed today plans to invest a total of $4.5 billion in five of its existing Michigan plants, and to work with the city of Detroit and state of Michigan on building a new assembly plant within city limits. The move would increase capacity to meet growing demand for its Jeep® and Ram brands, including production of two new Jeep-branded white space products, as well as electrified models. The proposed projects would create nearly 6,500 new jobs.

The plant actions detailed in today’s announcement represent the next steps in a U.S. manufacturing realignment that FCA began in 2016. In response to a shift in consumer demand toward SUVs and trucks, the Company discontinued compact car production and retooled plants in Illinois, Ohio and Michigan to make full use of available capacity to expand the Jeep and Ram brands. Those actions have resulted in the recent launches of the award-winning all-new Jeep Wrangler and all-new Ram 1500, and the introduction of the newest member of the Jeep family, the all-new Jeep Gladiator, at the 2018 Los Angeles Auto Show.

“Three years ago, FCA set a course to grow our profitability based on the strength of the Jeep and Ram brands by realigning our U.S. manufacturing operations,” said Mike Manley, Chief Executive Officer, FCA N.V. “Today’s announcement represents the next step in that strategy. It allows Jeep to enter two white space segments that offer significant margin opportunities and will enable new electrified Jeep products, including at least four plug-in hybrid vehicles and the flexibility to produce fully battery-electric vehicles.”

The city of Detroit has 60 days to meet the terms of a Memorandum of Understanding, which requires the acquisition of property critical to the execution of the Mack project. The additional investments are subject to the successful negotiation and final approval of development packages with the state and other local governments.

Plant Investment Details
FCA would invest $1.6 billion to convert the two plants that comprise the Mack Avenue Engine Complex into the future assembly site for the next-generation Jeep Grand Cherokee, as well as an all-new three-row full-size Jeep SUV and plug-in hybrid (PHEV) models, adding 3,850 new jobs to support production. The Company intends to start construction of the new Detroit facility by the end of Q2 2019 with the first three-row vehicles expected to roll off the line by the end of 2020, followed by the all-new Grand Cherokee in the first half of 2021.

Also as part of this announcement, the Jefferson North Assembly Plant would receive an investment of $900 million to retool and modernize the facility to build the Dodge Durango and next-generation Jeep Grand Cherokee. FCA expects to create 1,100 new jobs at Jefferson North.

The reborn Mack facility would be the first new assembly plant to be built in the city of Detroit in nearly three decades. In 1991, Jefferson North was the last new assembly plant built in the city. When complete, Mack would join Jefferson North as the only automotive assembly plants to be located completely within the city limits of Detroit.

The Pentastar engines – the 3.6-, 3.2- and 3.0-liter – currently built at Mack I would be relocated to the Dundee Engine Plant as part of a $119 million investment. Pentastar production at Mack I would end by Q3 2019. Mack II has been idle since it ceased production of the 3.7-liter V-6 in September 2012.

FCA also confirms the investment at Warren Truck to retool for production of the all-new Jeep Wagoneer and Grand Wagoneer, announced in 2017, along with their electrified counterparts, would increase to $1.5 billion. Production is expected to launch in early 2021. In addition to the new Jeep models, the plant would continue building the Ram 1500 Classic, which is being extended to meet market demand. It is expected that 1,400 new jobs would be added. As a result of this investment announcement, production of the all-new Ram Heavy Duty will continue at its current location in Saltillo, Mexico.

To support the additional production, the Company’s Warren Stamping (Warren, Michigan) and Sterling Stamping (Sterling Heights, Michigan) plants would receive investments of $245 million and $160 million, respectively, with Sterling Stamping expected to add more than 80 new jobs.

This investment is part of the Company's capital spending plan presented in June 2018.

Realignment of FCA U.S. Manufacturing Operations
Over the past two years, FCA has realigned production at four plants in Illinois, Ohio and Michigan to increase capacity for the Jeep Cherokee, Jeep Wrangler and Ram 1500 light-duty truck, and created additional manufacturing capacity for the Jeep Gladiator in Ohio.

The investments included: 

• $350 million in the Belvidere Assembly Plant (Illinois) to produce the Jeep Cherokee, which moved from Toledo, Ohio, in 2017. More than 300 new jobs were added to support production, which launched in June 2017.
• $700 million in the Toledo Assembly Complex (Ohio) to retool the North plant to produce the next-generation Jeep Wrangler. Approximately 700 new jobs were added to support production, which began in December 2017.
• $1.48 billion in the Sterling Heights Assembly Plant (Michigan) to build the next-generation Ram 1500 truck, adding more than 700 new jobs. Production of the new truck began in March 2018. Production of the Ram 1500 Classic continues at Warren Truck (Michigan).
• $273 million in the south plant of the Toledo Assembly Complex to prepare the facility to produce the all-new Jeep Gladiator. The new truck is scheduled to launch in the first half of 2019.  

In total, FCA has committed to invest nearly $14.5 billion in its U.S. manufacturing operations, creating nearly 30,000 new jobs since June 2009.

View full article

[G. David Felt]

Very cool, good news especially for those that might loose jobs from Ford or GM, maybe they can get a job at FCA.

[Robert Hall]

Good news for the Motor City, good news for Jeep. 

[Paolino]

That's great news... did I miss the news about Chrysler?  Are they really a 1-vehicle show (I don't consider the dead 300 or the fact that they have the Pacifica and Pacifica plug-in as 2 vehicles) or is something else coming?

[Drew Dowdell]

1 minute ago, Paolino said:

That's great news... did I miss the news about Chrysler?  Are they really a 1-vehicle show (I don't consider the dead 300 or the fact that they have the Pacifica and Pacifica plug-in as 2 vehicles) or is something else coming?

No, this is all Jeep/Ram/Dodge news for now.

[daves87rs]

Ah, a company that puts it’s money where it’s mouth is....

Maybe a Jeep is really in the future.....

[Potluck]

I don't see it, will there be a next generation Durango?

[Drew Dowdell]

It sounds like one of the Jeeps will take over the Durango spot. No mention of a next-generation Durango yet. 

[ocnblu]

10 hours ago, Drew Dowdell said:

It sounds like one of the Jeeps will take over the Durango spot. No mention of a next-generation Durango yet. 

This is concerning.  I'm reading this and wondering where the new Journey is, where the new Durango is... FCA needs to keep these models, as they are not Jeeps, meaning, a Jeep should not be covering the same customer as a Journey or a Durango customer.  The Dodge customers want a people mover with AWD capability, but gritty, street style.  Those are not Jeep attributes and should not be.  A Jeep should remain outdoor themed.

[daves87rs]

57 minutes ago, ocnblu said:

This is concerning.  I'm reading this and wondering where the new Journey is, where the new Durango is... FCA needs to keep these models, as they are not Jeeps, meaning, a Jeep should not be covering the same customer as a Journey or a Durango customer.  The Dodge customers want a people mover with AWD capability, but gritty, street style.  Those are not Jeep attributes and should not be.  A Jeep should remain outdoor themed.

Pretty sure the Durango will be hanging around for a while.

Journey is built in Mexico, production should end soon. Know there is a replacement, just not sure what....

[Robert Hall]

19 hours ago, Potluck said:

I don't see it, will there be a next generation Durango?

The Five Year plan from last year indicated a 3 row Grand Cherokee was coming (whether it will be badged as a GC or something else is unknown), distinct from the full sized Wagoneer & Grand Wagoneer.    I don't recall anything specific in the slides regarding Dodge SUVs, but I've seen speculation on Allpar that the next Durango would be a full sizer on the same Ram-based platform as the Wagoneer/Grand Wagoneer.   Time will tell. 

Edited February 28, 2019 by Robert Hall

[Potluck]

don't care about the journey, its junk. the Durango needs to keep going and get an update. is it going to go big like a suburban

[G. David Felt]

1 hour ago, Robert Hall said:

The Five Year plan from last year indicated a 3 row Grand Cherokee was coming (whether it will be badged as a GC or something else is unknown), distinct from the full sized Wagoneer & Grand Wagoneer.    I don't recall anything specific in the slides regarding Dodge SUVs, but I've seen speculation on Allpar that the next Durango would be a full sizer on the same Ram-based platform as the Wagoneer/Grand Wagoneer.   Time will tell. 

Durango FAILED as a full size SUV. They need to keep it in the size it is and if they want a full size SUV for Dodge, then bring out something New like you said based on the Full size RAM Wagoneer or what ever Jeep calls it.

[Drew Dowdell]

Just now, dfelt said:

Durango FAILED as a full size SUV. They need to keep it in the size it is and if they want a full size SUV for Dodge, then bring out something New like you said based on the Full size RAM Wagoneer or what ever Jeep calls it.

The Durango has never been a full size SUV.... what are you talking about?

[G. David Felt]

18 minutes ago, Drew Dowdell said:

The Durango has never been a full size SUV.... what are you talking about?

2004 to 2009 Second Generation Durango that my nephew had for a few years and got rid of as it was a problem line, but was based on the full size Ram pickup boxed frame unlike the first generation and third generation Durangos.

My understanding and from what I see on the web is my Daughters 99 Durango is based on the same boxed frame as the Dakota, but for the second generation Durango / Aspen SUV they built it off the Ram frame as the SUV became 7 inches longer, 2 inches wider and 3 inches taller due to the Ram underpinnings.

Gen 1

Gen 2

I admit I could be wrong but that was my understanding. Generation 2 was a full size and did not do as well as Generation 1 as to why Gen 3 went back to the same formula as Gen 1.

[Drew Dowdell]

11 minutes ago, dfelt said:

2004 to 2009 Second Generation Durango that my nephew had for a few years and got rid of as it was a problem line, but was based on the full size Ram pickup boxed frame unlike the first generation and third generation Durangos.

My understanding and from what I see on the web is my Daughters 99 Durango is based on the same boxed frame as the Dakota, but for the second generation Durango / Aspen SUV they built it off the Ram frame as the SUV became 7 inches longer, 2 inches wider and 3 inches taller due to the Ram underpinnings.

Gen 1

Gen 2

I admit I could be wrong but that was my understanding. Generation 2 was a full size and did not do as well as Generation 1 as to why Gen 3 went back to the same formula as Gen 1.

No it wasn't. It was based on the midsize Dakota platform.

[Robert Hall]

Durango Gen 1 and Gen 2 were both based on the midsize Dakota is my understanding (Dakota Gen 2 and Gen 3), Durango Gen 3 is based on the WK2 Grand Cherokee.   Durango Gen 2 was painfully ugly in the front, IMO..almost minivanish in it's lumpen shape. 

To confuse matters, Wikipedia says the 3rd gen Dakota and 2nd Gen Durango were 'now similar to the Ram' as far as the frame....also says" Like the Dakota, it (2nd gen Durango) has much in common with the large Dodge Ram pickup".     The 2nd gen Durangos and 3rd gen Dakotas seem to have all  disappeared..haven't seen any in ages.  1st gen Durangos and 1st & 2nd gen Dakotas have presumably rusted away here. 

Edited February 28, 2019 by Robert Hall

[G. David Felt]

59 minutes ago, Drew Dowdell said:

No it wasn't. It was based on the midsize Dakota platform.

Much appreciate the clarity Drew. The larger size seemed to be a move to full size, but weird to know it was still Dakota based even though it was noticeably bigger than Gen 1.

I do like the Gen 3 Durangos.

@Robert Hall I agree that the Gen 2 and 3 of the Dakota are like MIA around here and yet you see a ton of Gen 1 Dakotas still.

Clearly Dodge lost their way with Gen 2 Durango's and Gen 2 & 3 Dakota's. I will say that the V8 engine in Gen 2 Dakota's is a nightmare. My sister had one and unloaded it as it was just one thing after another breaking. Once out of warranty, not worth keeping it.