FCA announced Tuesday it will invest $4.5 billion in five plants to build new models of Jeeps to compete in the full-size SUV market.
The new investment will create 6,500 jobs in Michigan. Chief Executive Officer Mike Manley said that the company’s investments are focused on SUVs, an area “forecasted to continue to grow.” He added that 60 percent of SUV sales are for three-row models “and we don’t have a three-row offering... and this is a segment that I’ve been very interested in for some time.”
The investments will enable three Michigan plants to produce hybrid and fully electric Jeep models. Manley said those hybrid models and/or electric models could be available as soon as late 2021 but will be rolled out based on consumer demand.
FCA plans to start construction on the new $1.6 billion Detroit facility in the third quarter of 2019 and begin production of a new three-row SUV by the end of 2020, followed by a revamped version of the Grand Cherokee in the first half of 2021.The plans also include a $900 million investment to modernize and retool another Detroit plant to make the Dodge Durango and Jeep Grand Cherokee.