Fiat Chrysler Automobiles prepares to invest $1 billion to retool its plants located in Toledo, Ohio, and Belvidere, Ill., and develop 1,000 new jobs as it shuffles its North American production footprint.
The automaker stated it is going to invest $700 million at its Toledo Assembly North Plant to get ready for the next-generation Jeep Wrangler and broaden the production capability of the SUV. The company states that it plans to add about 700 jobs at that plant.
In Belvidere, the automaker prepares to invest $350 million to make the plant to assemble the Jeep Cherokee, which is presently integrated in Toledo.
The automaker stated it is bringing production of the Dodge Dart to end in September and it is going to quit producing the Jeep Compass and Jeep Patriot in December. The two Jeep SUVs are going to be replaced by a single SUV that will be developed in Mexico starting next year.
Jeep prepares to unveil its replacement for the Compass and Patriot SUVs in Brazil this fall and plans to reveal the car for the first time in North America at the Los Angeles Auto Show in the upcoming November.
Fiat Chrysler had formerly validated that it planned to move the Cherokee from Toledo to Belvidere however had not stated just how much it prepared to invest in either plant till today.
The automaker prepares to reveal its next-generation Wrangler throughout the first half of 2017. Fiat Chrysler chose to move the Cherokee to Belvidere so it could continue making the existing Wrangler up until it is able to switch to the brand-new Wrangler and not lose out on any production time. The automaker did not say when production of Cherokee will be ended in Toledo.
Fiat Chrysler’s production capability for the Wrangler has been restricted to about 240,000 every year. Under the new plan, sources have informed the Free Press the automaker might make over 350,000 every year. Mike Manley, head of the Jeep brand for FCA, likewise has verified that the business will establish a pickup variation of the Wrangler.
The company said its strategies stay depending on the official approval of incentives by state and regional entities.
Fiat Chrysler CEO Sergio Marchionne tried to relieve issues by promising there would be no job losses at its two plants, which currently use more than 4,800 per hour employees. On Thursday, Ohio Gov. John Kasich praised the new jobs.