Fiat Chrysler to build second Jeep assembly plant in Detroit

Fiat Chrysler Automobiles (FCA) plans to construct Jeep Grand Cherokee SUVs in a mothballed Detroit plant in 2020, four people knowledgeable about the plans informed Reuters on Thursday.

News of the Fiat Chrysler’s new plant leaked on the same day General Motors CEO Mary Barra was finishing a two-day visit in Washington with lawmakers critical over the automaker’s plan to shut down five North American assembly plants next year and slash 15,000 jobs due to sluggish demand for sedans and small cars in the U.S. market.

Fiat Chrysler prepares to revive Mack Avenue Engine II, that has been idled since 2012, as a vehicle assembly plant to give additional capacity to construct the redesigned Grand Cherokee, consisting a new three-row version, stated the sources, who asked not to be identified.

Fiat Chrysler refused to discuss.

FCA, which phased out production of sedans in the U.S. market, constructs its two-row Grand Cherokee at its Jefferson North plant and needs extra space.

The move could add no less than 100 and up to 400 jobs in the city, according to the Detroit News, which previously reported on Fiat’s plans. However, a source informed Reuters the employment figures will be way higher.