FCA to Produce Jeep at Former Detroit Engine Plant
- The Fiat-Chrysler Group announced that, starting in 2021, it will produce future Jeep brand models in a former Chrysler Group engine plant in Detroit.
- The Mack Avenue engine manufacturing plant, shut down since 2012, will be re-equipped to produce the next generation of the Jeep Grand Cherokee scheduled for 2021, and the Jeep Grand Wagoneer (7 seater).
- Currently, the Grand Cherokee is manufactured in the Fiat-Chrysler plant in Detroit (273,000 units in 2017) which is almost saturated (300,000 units per year capacity).
- Moreover, all of the assembly plants of the Fiat-Chrysler Group located in the United States currently operate at 92% of their capacities, while those of GM and Ford operate at 72% and 81% respectively.
- So the Fiat-Chrysler Group, unlike GM and Ford, now operates at full capacity and needs new assembly lines to be able to produce future models and meet global demand, which is more and more turned towards SUVs, a Jeep specialty since the nineteen sixties.
- Rather than building a new factory in the United States, the Fiat-Chrysler Group has chosen to assign a former engine production plant to the assembly of vehicles.
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