Fiat-Chrysler Reveals $1B Expansion Plan
- Jan 10, 2017
Warren, Mich. and Toledo, Ohio—FCA, the seventh largest automaker in the world based on total annual vehicle sales, recently disclosed its plans to invest $1 billion to modernize its facilities in Warren, Mich. and Toledo, Ohio. The automaker’s expansion projects will create 2,000 jobs in the Midwest. The announcement is subject to the negotiation and final approval of incentives by state and local entities.
“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 NV, in a prepared statement.
With this investment, FCA US will retool the Warren Truck Assembly Plant in Michigan to produce the new Jeep Wagoneer and Grand Wagoneer. The company will also reposition the south plant of the Toledo Assembly Complex in Ohio to build a new Jeep pickup truck. All these actions are planned to be completed by 2020 and more than 2,000 jobs will be added to support production. The Warren facility might take over the production of the Ram heavy duty truck, which is currently produced in Mexico.
“The expansion of our Jeep lineup has been and continues to be the key pillar of our strategy. Our commitment to internationalize the Jeep brand is unwavering and with these last moves, we will finally have the capacity to successfully penetrate markets other than the U.S. which have historically been denied product due to capacity constraints,” Marchionne added.
FCA intends to increase production capacity in the U.S. on trucks and SUVs to match demand, but to also increase exports of midsize and large vehicles to international markets.
This announcement comes shortly after another major investment plan was revealed regarding Ford Motor Co. The firm is spending roughly $700 million to expand its Flat Rock, Mich., plant.
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