Fiat Chrysler 'plans new United States factory'

08 December, 2018, 12:04 | Author: Regina Silva
  • Fiat Chrysler plans new US factory in Detroit

Fiat Chrysler Automobiles will allegedly convert an existing engine factory in Detroit, Michigan, to build a new three-row version of the Jeep Grand Cherokee, according to multiple media sources including The Detroit Bureau and The Detroit News.

The facility, known as the Mack Avenue Engine II plant, was opened in 2000 to manufacture engines for Jeeps and trucks, then idled in 2012 as Chrysler replaced those engines with ones made in MI and Mexico.

The Detroit News is reporting that the automaker wants to revive its Mack Avenue Engine II plant that has been idle since 2012 to build a new three-row Jeep Grand Cherokee for the model year 2021.

Overall, Fiat Chrysler's United States sales are up 8% this year, with growth driven by its Jeep line-up. The Detroit News estimated that the new plant could create up to 400 jobs. The person spoke on condition of anonymity because the plan has not been made public. This comes on the heels of General Motors announcing that it will be closing a plant in the same city.

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The move will allow FCA to retool Jefferson North for the next-generation Jeep Cherokee without interrupting the flow of its profit-rich SUV to dealerships, the News reported.

By 2014, the American auto company was a subsidiary of Fiat.

GM has come under intense criticism from both Democratic and Republican lawmakers as well as U.S. President Donald Trump for its plan, with many asking the automaker to reverse its decision. They have dropped 10 percent in 2018.

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