Chrysler to open factory in Detroit, weeks after GM layoffs

Galtero Lara
Diciembre 8, 2018

Fiat Chrysler Automobiles plans to reopen its long-idled Mack II engine plant in Detroit as an assembly plant to build three-row Jeep SUVs, The Detroit News and CNBC reported today, citing multiple sources familiar with the plans. 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.

Fiat Chrysler declined to comment Thursday.

Rather than construct an entirely new facility, the company is said to be planning to repurpose its Mack Avenue Engine II plant - shut down since 2012 - to serve as a vehicle assembly site, according to The Detroit News. The person spoke on condition of anonymity because the plan has not been made public. According to a report from The Detroit News, FCA will introduce the option with the full model change for MY2021. Overall sales jumped 17 percent in November over the same month previous year - fueled largely by its popular Jeep SUVs and Ram Trucks.

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The company's chief financial officer told investors in June that trucks and SUVs would account for 80 percent of revenue by 2022.

If true, the plans would be a rare domestic expansion by a United States auto company in an industry where rivals are cutting back on production. GM's moves drew fierce blowback from Washington, including President Donald Trump.

US -traded shares of Fiat Chrysler Automobiles NV fell 49 cents, or 3 percent, to close at $16.

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