Detroit city contributes to the FCA expansion plan in Michigan
Fiat Chrysler Automobiles said it was moving forward with a $1.6 billion plan to open a second Jeep assembly plant in Detroit after the city finished acquiring about 215 acres the automaker needed for the project.
Detroit Mayor Michael Duggan said the city is contributing $50.6 million toward land deals worth $107.6 million so that FCA can reopen and expand an idled engine plant to produce the next-generation Jeep Grand Cherokee and a three-row Jeep SUV.
Key to the deal was a $43.5 million payment the city negotiated for 82 acres owned by the same family that sold Detroit's abandoned Michigan Central Station to Ford last year.
The new Jeep plant is the centerpiece of a $4.5 billion investment to retool and modernize several assembly sites in southeastern Michigan, including enhancements for production of electrified vehicles.
Overall, FCA's investments are expected to create around new 6,500 jobs.