Economy

Fiat Chrysler to put assembly plant in Detroit area

Fiat Chrysler to put assembly plant in Detroit area

Fiat Chrysler Automobiles NV plans to convert an idled engine plant in the city into an assembly plant as part of the automaker's plans to add a new three-row Jeep SUV to its lineup, The Detroit News has learned.

General Motors recently announced it is closing its assembly plant in Detroit-Hamtramck next summer.

According to the Wall Street Journal, this is the first assembly plant to be opened by any major domestic vehicle company in the United States in a decade. It would be the first new assembly plant in Detroit since Chrysler opened up its Jefferson North plant in 1992.

Last week, Trump demanded GM add a new product at a plant in OH targeted for closure and later threatened to cut electric vehicle subsidies.

Fiat Chrysler "is essentially out of capacity", Jeff Schuster, an analyst with LMC Automotive in Troy, told the Detroit News.

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The plant will be housed at a Mack II Engine Plant that closed in 2012. A year later, the Italian-American company said it would create 2,500 new jobs at its Warren, Michigan, plant north of Detroit to make heavy-duty Ram trucks.

Italian automaker Fiat had started buying up shares in Chrysler in 2009, when the American vehicle company filed for bankruptcy.

News of Fiat Chrysler's plan may put pressure on GM to respond, coming moments before Barra approached the cameras on Capitol Hill to discuss her meetings with lawmakers.

Sales of SUVs and pickups have been one of Fiat Chrysler's biggest areas of growth and kept it ahead of its USA rivals.