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Fiat Chrysler: New plant for Jeeps planned for the Detroit area

08 December 2018

Fiat Chrysler Automobiles NV plans to convert an idled engine plant in the city into an assembly plant as part of the automaker's plans to add a new three-row Jeep SUV to its lineup, The Detroit News has learned. It would mark the first new auto assembly line to open in Detroit in 27 years.

The American automaker intends to build a new three-row Jeep Grand Cherokee for model year 2021, according to the Detroit News, which first reported the story.

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. Trump made restoring auto production a top priority of his campaign - and also praised Germany's BMW for considering plans to build a new transmission plant in the United States.

General Motors last month cited the slackening demand when it announced plans to halt production at five factories in North America, including four in the US.

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An official announcement from FCA confirming the re-opening of Mack Avenue Engine II is expected to happen late next week.

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

The company's plans for Detroit came as GM CEO Mary Barra testified on Capitol Hill about the closures, during which lawmakers asked her to keep the plants open.

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

Fiat Chrysler: New plant for Jeeps planned for the Detroit area