Fiat Chrysler to invest $4.5B in Detroit area

Michigan
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A plan was announced today that is expected to bring more than 6,400 jobs and billions of dollars in investments to Michigan.

Governor Gretchen Whitmer announced the most recent step ahead in Fiat Chrysler’s plans to build a new state-of-the-art assembly plant in Detroit and expand production at five existing Michigan facilities.

The Michigan Strategic Fund today approved a package of incentives in support of the project.
 
“This is a historic day for Michigan after we secured the largest automotive assembly plant deal in the country in the last decade – with 6,433 new jobs and $4.5 billion in private investment from FCA,” Whitmer said.

The automaker plans to convert its Mack Avenue Engine Complex into the future assembly site for the next-generation Jeep Grand Cherokee and an all-new three-row full-size Jeep SUV, along with plug-in hybrid models.

The project is expected to generate a total investment of $1.6 billion and create 3,850 new Fiat Chrysler jobs in Detroit.

The new facility will be the first new assembly plant to be built within Detroit’s city limits in nearly three decades. 
 
FCA will also invest $900 million in its Jefferson North Assembly Plant (JNAP), also in Detroit, to retool and modernize it for continued production of the Dodge Durango and next generation Jeep Grand Cherokee, creating an additional 1,100 new FCA jobs in the city. 

To support these projects in Detroit, the Michigan Strategic Fund approved:  
•    A $10 million Michigan Business Development Program performance-based grant;  
•    100-percent Good Jobs for Michigan withholding tax capture for up to 10 years valued at up to $99 million;  
•    A 100-percent State Essential Services Assessment exemption for up to 15 years valued at up to $13.5 million for the JNAP facility;  
•    A 100-percent SESA Exemption for up to 15 years valued at up to $18 million for the Mack Avenue complex.  
 
The city of Detroit has also invested $50.6 million in the Mack Avenue and JNAP projects and anticipates approval of a 50-percent property tax abatement in support of the project. 

“This is a great example of partnership and cooperation between the city and state to bring these opportunities to our city and this region of our state.” – Detroit Mayor Mike Duggan


The Detroit Brownfield Redevelopment Authority also received MSF approval of a $35 million Michigan Strategic Fund performance-based grant today and a $20 million MSF Investment Fund loan to assist with site preparation costs at the sites in and around Detroit that will allow the company to expand. 
 
Pending approval of local incentives, FCA also plans to invest $1.5 billion at its Warren Truck Assembly Plant for production of the all-new Jeep Wagoneer and Grand Wagoneer, along with electrified offerings, creating 1,400 new jobs at that facility.

The company will also invest more than $236 million at its Warren Stamping plant to add new technology and machinery to support the increased vehicle production.

Fiat Chrysler also plans to invest an additional $169.3 million at its Sterling Stamping Plant, a project that is expected to create 83 jobs.

The city of Warren will consider a personal property tax abatement in support of the Warren Truck Assembly Plant project.  

Estimates from the Center for Automotive Research show every job in an automotive assembly plant has a multiplier of eight jobs throughout the supply chain. 
 

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