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Fiat Chrysler to add second Jeep assembly plant in Detroit - sources

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By Reuters

(Reuters) – Fiat Chrysler Automobiles <FCHA.MI> <FCAU.N> plans to build Jeep Grand Cherokee SUVs in a now-mothballed Detroit plant in 2020, four people familiar with the plans told Reuters.

The automaker plans to revive Mack Avenue Engine II, which has been idled since 2012, as a vehicle assembly plant to provide additional capacity to build the redesigned Grand Cherokee, including a new three-row version, the sources said.

Fiat Chrysler declined to comment.

FCA, which phased out production of sedans in the U.S. market, is building the current two-row Grand Cherokee at capacity at its Jefferson North plant, and needs additional capacity.

The move could add at least 100 and up to 400 jobs in the city, according to the Detroit News, which earlier reported on Fiat’s plans.

Fiat Chrysler’s plan stands in stark contrast to that of larger rival General Motors Co <GM.N>, which last week said it would close five North American assembly plants next year and cut up to 15,000 jobs due to weak demand for sedans and small cars in the U.S. market. [nL2N1Y10G5]

GM has come under intense criticism from both Democratic and Republican lawmakers as well as U.S. President Donald Trump for its plan, with many asking the Detroit automaker to change its mind. [nL1N1YA1MX] [nL1N1YB2D3]

(Reporting by Nivedita Balu in Bengaluru, David Shepardson in Washington, and Paul Lienert and Ben Klayman in Detroit; Editing by Anil D’Silva and Richard Chang)