FCA investing big in their next generation vehicles
Posted on March 7, 2019
All automakers have to invest money into development, it’s part of how the industry works and a big chunk of the cost of your car. FCA is making something of a statement with their latest investment though. They are planning to spend $4.5 billion USD in their future.
That investment will be spending the money at their locations in Michigan over the coming years. It will be in preparation for the next generation Jeep Grand Cherokee, Wagoneer and their future EVs.
The Mack Avenue Engine Complex will receive $1.6 billion. It currently manufactures the Pentastar V6 but will shift production for the Grand Cherokee. Future plans for the site also include expanding it to make a new model by the end of next year and perhaps EVs in the future.
The Dundee Engine Plant will get $119 million. This will be to take over Pentastar production alongside the 2.4 litre Dodge and Jeep engines it currently produces.
The Jefferson North assembly plant will get $900 million which includes retooling for the Dodge Durango. We thought this model was on its way out but that may not be the case. It also manufactures the Jeep Grand Cherokee so will presumably use some of the cash for that too.
The Warren Truck plant gets another $500 million to add to the $1 billion already earmarked for the plant. This will be to retool for the Jeep Wagoneer and Grand Wagoneer. The Jeep EV will also be produced here apparently, including hybrids.
Finally, Warren Stamping and Sterling Stamping will get $245 million and $160 million respectively to help them keep up with production increases.
This investment is expected to generate up to 6,500 new jobs in a state that really needs them. This is as much good news as the investment and will be a real boost to the local economy. At a time when the auto industry is under increasing pressure to lower costs and increase efficiency, it’s good to see an automaker invest heavily in its own success.
is not the only company investing in production but this is one of the largest financial commitments of any of the larger manufacturers. With a commitment to deliver three new models, more hybrids and EVs and improvements across the board, this money is going to be very well spent!