Whitmer announces next step in Fiat Chrysler Automobile’s Detroit plant

Gov. Whitmer announcing the next step in the new Fiat Chysler automotive plant in Detroit on 5-21-2019. (Source: WILX)
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LANSING, MI (WILX) - Governor Gretchen Whitmer on Tuesday announced the most recent step ahead in Fiat Chrysler Automobile’s plans to build a new state-of-the-art assembly plant in Detroit and expand production at five existing Michigan facilities.

FCA plans to convert its Mack Avenue Engine Complex into the future assembly site for the next-generation Jeep Grand Cherokee and an all-new three-row full-size Jeep SUV, along with plug-in hybrid models.

The project is expected to create 6,433 jobs in Michigan and generate $4.5 billion in investment.

The Michigan Strategic Fund today approved a package of incentives in support of the project, the Michigan Economic Development Corporation announced.

“This is a historic day for Michigan after we secured the largest automotive assembly plant deal in the country in the last decade – with 6,433 new jobs and $4.5 billion in private investment from FCA,” Whitmer said. “FCA’s investment in five existing plants, as well as plans to build an all-new assembly plant here in Michigan, sends an irrefutable signal that Michigan remains the automotive capital of the world. Today’s announcement highlights the strong bet FCA is making on Michigan’s talent, our manufacturing prowess and our leadership in new automotive technology, including electric and autonomous vehicles.”

The project will generate a total investment of $1.6 billion and create 3,850 new FCA jobs in Detroit.

The new facility will be the first new assembly plant to be built within Detroit’s city limits in nearly three decades.

FCA will also invest $900 million in its Jefferson North Assembly Plant (JNAP), also in Detroit, to retool and modernize it for continued production of the Dodge Durango and next generation Jeep Grand Cherokee, creating an additional 1,100 new FCA jobs in the city.

To support these projects in Detroit, the Michigan Strategic Fund approved:

- A $10 million Michigan Business Development Program performance-based grant;

- 100-percent Good Jobs for Michigan withholding tax capture for up to 10 years valued at up to $99 million;

- A 100-percent State Essential Services Assessment (SESA) exemption for up to 15 years valued at up to $13.5 million for the JNAP facility;

- A 100-percent SESA Exemption for up to 15 years valued at up to $18 million for the Mack Avenue complex.

The City of Detroit has also invested $50.6 million in the Mack Avenue and JNAP projects and anticipates approval of a 50-percent property tax abatement in support of the project.

The City of Warren will consider a personal property tax abatement in support of the Warren Truck Assembly Plant project.

Michigan Economic Development Corporation CEO Jeff Mason said the company’s decision to expand in Michigan will have a far-reaching impact on the entire state. Estimates from the Center for Automotive Research show every job in an automotive assembly plant has a multiplier of eight jobs throughout the supply chain.

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