Fiat Chrysler announces $4.5B Detroit investment plan

Fiat Chrysler announces $4.5B Detroit investment plan
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Fiat Chrysler on Tuesday detailed a $4.5 billion investment plan for its operations in Detroit, focusing on five existing plants in the city and one new one. 

The company said in a news release that the changes would increase production capacity for some of its SUVs, including the Jeep Grand Cherokee and Ram brands. The proposal would result in roughly 6,500 new jobs, the company said.

The investment is contingent on the state of Michigan and the cities of Detroit, Sterling Heights, Warren and Dundee working out an incentives package with Fiat Chrysler, which is based in Auburn Hills, Mich.

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Parts of the investment plan elaborate on previously announced projects, such as a $1.6 billion investment in the Mack Avenue Engine Complex, which was first reported late last year by The Detroit News.

That project involves converting two engine plants into a future assembly site for a new Jeep Grand Cherokee and other SUV models. Construction is expected to start in mid-2019, with production on vehicles underway by the end of 2020. The Mack Avenue facility would produce 3,850 new jobs, the company said.

The company also previously announced plans to invest in its Warren Truck facility, though Tuesday's news release noted that the investment has increased to $1.5 billion. That facility would be the source of 1,400 new jobs, the company said.

The Trump administration has regularly touted the resurgence of manufacturing jobs as evidence that his economic policies have been successful.

The president faced a setback last November after General Motors announced plans to slash 15,000 jobs and close manufacturing sites in, Ohio, Michigan, Maryland and Canada.