Fiat Chrysler N.V.’s FCAU plan to set up an assembly hub in Detroit, MI, has been approved by the Detroit City Council. The company will invest $1.6 billion to construct the plant that is likely to start rolling out vehicles by the end of 2020. Apart from the new factory, the automaker will invest $900 million to upgrade and modernize the Jefferson North Assembly Plant, which will be used to manufacture Dodge Durango and next-generation Jeep Grand Cherokee. The to-be-build plant and the existing Jefferson plants will be adjacent.
The recent investment approval is part of Fiat Chrysler’s plan to invest $4.5 billion at five existing Michigan plants. In February 2019, the company announced the investment that will help it meet the growing demand for vehicles under the Jeep and Ram brands.
Apart from the go-ahead signal, the automaker has been approved a $223-million incentive package from Michigan's economic development board. The incentive is in exchange for the 6,400 jobs that will be created once the hubs start working. Out of the total incentive, $55 million is for site preparation and $168 million is in forms of tax breaks, exemptions and cash.
Fiat Chrysler Automobiles N.V. Price and Consensus