Fiat Chrysler To Invest $1 Billion In Jeep, Creating 2,000 US Jobs

TOM KRISHER
AP Auto Writer

DETROIT (AP) — Fiat Chrysler says it will add three new Jeeps to its lineup including a pickup truck as it invests $1 billion in two U.S. factories and creates 2,000 new jobs.

The Italian-American automaker said Sunday it will modernize a factory in the Detroit suburb of Warren, Michigan, to make the new Jeep Wagoneer and Grand Wagoneer large SUVs. A factory complex just south of there in Toledo, Ohio, also will get new equipment to make the new pickup. The company wouldn’t provide details of the new products, but said the factory work would be done in 2020.

The announcement is another step in FCA’s effort to increase production of hot-selling SUVs and pickup trucks and get out of producing small and midsize cars as consumers worldwide shift away from cars. Last year it announced plans to stop production of the slow-selling Dodge Dart and Chrysler 200. Factories that make those products in Sterling Heights, Michigan, and Belvidere, Ill., will get new trucks and SUVs.

The factory upgrade in Warren also will allow the plant to make heavy-duty Ram pickups that now are produced in Saltillo, Mexico. But FCA would not say if it has plans to shift production to the north.

Producing vehicles in Mexico and shipping them to the U.S. has become a thorny political issue with the election of Donald Trump as president. Trump has criticized Ford, General Motors and Toyota for building small cars in Mexico and shipping them across the border. He has threatened to impose a big border tax on the companies.

The factory moves expand FCA’s capacity to build vehicles in key segments “enabling us to meet growing demand here in the U.S., but more importantly to increase exports of our mid-size and larger vehicles to international markets,” CEO Sergio Marchionne said in a statement.

The company would not say how much would be invested in each plant or how many new jobs would go to each.

 

Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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