Fiat Chrysler Automobiles announced Tuesday it would spend $4.5 billion at its production plants in Michigan to build the next-generation Jeep Grand Cherokee, an unnamed three-row SUV related to the Grand Cherokee, and its upcoming Wagoneer and Grand Wagoneer SUVs. Those products, and more for Jeep, will be electrified and could include fully electric versions.
The $4.5 billion will be spread across five FCA production sites, and, the Mack Avenue Engine Complex will receive $1.6 billion. The site currently handles production of the Pentastar V-6 engines but will be overhauled to be a future home for the next-generation Jeep Grand Cherokee. FCA will start construction of the reborn Mack Avenue plant in the spring and begin production of a new three-row Jeep model by the end of 2020. Production of the next-generation Grand Cherokee will kick off in the first half of 2021, according to the automaker.
Rendering of FCA Mack Avenue production plant for Jeep Grand Cherokee production
The facility also may produce electrified versions of the three-row Jeep and the new Grand Cherokee. FCA CEO Mike Manley said in the announcement that the investment will result in at least four plug-in hybrid models for Jeep. FCA spokeswoman Jodi Tinson told Motor Authority Jeep's electrification system is not the eTorque powertrain and it will be separate.
Rendering of FCA Mack Avenue production plant for Jeep Grand Cherokee production
With Jeep Grand Cherokee and a three-row model coming to Mack Avenue, the current V-6 engine production will move to the Dundee Engine Plant where FCA assembles the 2.4-liter engines found in Dodge and Jeep models. FCA will spend $119 million to add the V-6 engine production to the plant.
Interestingly, the $4.5 billion also includes a $900 million investment in the Jefferson North assembly plant, which will retool for Dodge Durango and next-generation Jeep Grand Cherokee production as well. FCA would not comment on the Durango's future or if it plans for a next-generation model at the facility, but said the next Grand Cherokee will be produced at two factories.
2019 Jeep Grand Cherokee
Additionally, the previous $1 billion investment for the Warren Truck plant has increased to $1.5 billion. The investment will be used to retool the plant for Jeep Wagoneer and Grand Wagoneer production, while Ram Classic production will soldier on. FCA said the investment also supports production of Jeeps' electrified variants. We'll likely see plug-in hybrid versions of both SUVs after they debut for the 2022 model year. The Warren Stamping and Sterling Stamping facilities will also receive $245 million and $160 million to support the production increases in Michigan.
In total, FCA expects to add up to 6,500 new jobs with the investments.
Not only will Jeep reveal three new models in the next three years, but we know Jeep also plans to double down on its Deserthawk and Trackhawk models. Previously, the brand said it plans to expand the number of models it offers with the off-road and high-performance trims.
