Michigan approves $223M incentive package for new Fiat Chrysler plantAll Articles
Fiat Chrysler Automobiles plans to invest $4.5 billion to build a new assembly plant in Detroit and expand production at five existing Michigan facilities, creating 6,433 new jobs.
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 (PHEV) models. 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. The company 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 government incentives which include:
- A $10 million Michigan Business Development Program performance-based grant.
- 100% Good Jobs for Michigan withholding tax incentive for up to 10 years valued at $99 million.
- A 100% State Essential Services Assessment (SESA) exemption for up to 15 years valued at up to $13.5 million for the JNAP facility.
- A 100% SESA Exemption for up to 15 years valued at up to $18 million for the Mack Avenue complex.
The Detroit Brownfield Redevelopment Authority also received MSF approval of a $35 million Michigan Strategic Fund performance-based grant and a $20 million MSF Investment Fund loan to assist with site preparation costs at the sites in and around Detroit that will allow the company to expand. The city of Detroit has also invested $50.6 million in the Mack Avenue and JNAP projects and anticipates approval of a 50% property tax abatement in support of the project.
“Thanks to the strong support of Governor Whitmer, the Michigan Economic Development Corporation and city of Detroit, I am pleased to confirm that plans to invest in our Jefferson North Assembly Plant and build a new state-of-the-art assembly plant in Detroit have been given the green light. At FCA, we are continuing to build a secure future, not only for our company but also for the communities in which we operate. This investment enables us to deliver on this promise in the state and city we call home.” said Mark Stewart, Chief Operating Officer.
FCA also plans to invest $1.5 billion at its Warren Truck Assembly Plant for production of the all-new Jeep Wagoneer and Grand Wagoneer, along with electrified offerings, creating 1,400 new jobs at that facility. The company will also invest more than $236 million at its Warren Stamping plant to add new technology and machinery to support the increased vehicle production. FCA will also invest an additional $169.3 million at its Sterling Stamping Plant, a project that is expected to create 83 jobs. The Pentastar engines, currently built at Mack I, would be relocated to the Dundee Engine Plant as part of a $119 million investment.
To support these expansions, MSF approved:
- A 50% Good Jobs for Michigan withholding tax incentive for up to five years valued at $6 million for the creation of 1,400 jobs at the Warren Truck plant.
- A 15-year SESA exemption valued at $21 million for Warren Truck;
- A five-year SESA exemption valued at $692,928 for the Warren Stamping Plant.
- A five-year Alternate State Essential Services Assessment exemption valued at $180,900 for the Sterling Heights plant.
The city of Warren will consider a personal property tax abatement in support of the Warren Truck Assembly Plant project.
“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. 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.” said Gretchen Whitmer, Michigan Governor.
Fiat Chrysler Automobiles designs, engineers, manufactures, distributes and sells vehicles, components and production systems. The company operates through five segments: NAFTA, LATAM, APAC, EMEA and Maserati. It provides passenger cars, SUV vehicles, trucks and light commercial vehicles under the Jeep, Ram, Dodge, Chrysler, Fiat, Fiat Professional, Alfa Romeo and Abarth brands; and luxury vehicles under the Maserati brand, as well as related service parts and accessories and service contracts under the Mopar brand. In addition, it provides retail and dealer financings and leasing and rental services; and factoring services. The company sells its products directly, or through distributors and dealers in approximately 135 countries. The company was founded in 1899 and is based in London, United Kingdom.
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