FCA and the city of Detroit have signed a memorandum of understanding that provides 60 days to follow through on the agreed acquisition of land for the new plant.
Both the Sterling Stamping plant in Sterling Heights, Michigan, and Warren Stamping plant in Warren, Michigan, will get a $400 million total investment to support additional production, creating roughly 80 new U.S.jobs at the Sterling plant.
Since June 2009, FCA has committed to invest nearly $14.5 billion into USA manufacturing operations, which has created about 30,000 new jobs.
"This opportunity is unlike anything we have seen in decades", Detroit mayor Mike Duggan said in a statement, adding that the investments would take place "without displacing a single resident".
Fiat Chrysler Automobiles (FCA) is making a play for the growing market for three-row SUVs, FCA CEO Mike Manley told reporters. She says the $4.5 billion investment would have ripple effects in MI and other Midwest states, boosting the automotive industry and helping other non-auto businesses.
Fiat Chrysler Automobiles (FCA) has revealed its plan to expand production in the state of MI.
According to a press release from FCA, the company will work with the City of Detroit and MI to build the plant withing city limits.
The goal of expanding its factories is to boost production of SUVs and trucks.
The Jefferson North assembly plant will receive a $900m investment to retool and modernise for production of the Dodge Durango and next-generation Jeep Grand Cherokee. Northern Virginia and NY ultimately won the competition, but Amazon recently canceled the NY project - and some 25,000 promised jobs - after running into fierce opposition to those incentives from lawmakers and political activists on the left.
As Kristin Dziczek, vice president of industry, labor and economics at the Ann Arbor-based Center for Automotive Research said: "FCA just became everyone's darling". The city said it's offering $12 million in tax credits.
The three updated and renovated plants will create 6,350 new jobs making Jeeps. "They were looking at a business case, and what makes sense".
Union leaders also praised the announcement. This is especially exciting given that these are good union jobs with union wages and benefits that have been collectively bargained for with the company.