Fiat Chrysler to put assembly plant in Detroit area

Mae Love
December 8, 2018

Fiat Chrysler is planning to open a new assembly plant in Detroit, according to reports. Rather than stop heavy-duty Ram output in Saltillo, Mexico, Fiat Chrysler may keep producing them there, in addition to starting new assembly of them in Warren. The person spoke on condition of anonymity because the plan has not been made public.

Sales of SUVs and pickups have been one of Fiat Chrysler's biggest areas of growth and kept it ahead of its USA rivals.

Fiat Chrysler plans to revive Mack Avenue Engine II, which has been idled since 2012, as a vehicle assembly plant to provide additional capacity to build the redesigned Grand Cherokee, including a new three-row version, said the sources, who asked not to be identified. The site would reportedly employ about 400 people.

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The move comes as other automakers are cutting back or retrenching amid shifting consumer tastes.

FCA is running out of factory capacity in the United States but sees the demand for even more crossovers, according to The Detroit Bureau. General Motors announced last week that it plans to cut up to 14,000 jobs in North America and consider closing five plants as it abandons many cars in favor of trucks and SUVS, as well as autonomous and electric vehicles. "This is a very different situation than what GM is dealing with".

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.

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