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The access to Fiat Chrysler Automobiles’ Mack Avenue Agent bulb in Detroit is apparent on Thursday. FCA affairs to catechumen the abandoned Mack Avenue Agent II, abandoned back 2012, as an accumulation bulb to anatomy a new three-row Jeep Grand Cherokee for the archetypal year 2021.(Photo: John T. Greilick, Detroit News)

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Detroit — Fiat Chrysler Automobiles NV affairs to convert an idled agent bulb in the city into an accumulation bulb as allotment of the automaker’s affairs to add a new three-row Jeep SUV to its lineup, The Detroit News has learned.

The Auburn Hills-based automaker affairs to animate Mack Avenue Agent II, which has been idled back 2012, as an accumulation bulb architecture a new three-row Jeep Grand Cherokee for archetypal year 2021, assorted sources accustomed with the affairs told The News. The move could add as abounding as 400 new auto jobs in the city. 

The adapted Mack Avenue ability would be the aboriginal new auto assembly band to accessible in Detroit in 27 years, potentially cushioning the draft of General Motors Co.’s affairs to stop accumulation of four sedans at its Detroit-Hamtramck accumulation bulb by June 1. FCA’s affairs are the latest move by automakers in the crumbling canicule of the year afore Detroit’s automakers activate to renegotiate their affairs abutting year with the United Auto Workers.

Foreign and calm automakers are beneath accretion burden from President Donald Trump to addition accumulation of cars, trucks and SUVs in the United States — alike as his administering accomplishment a cher barter war with China, Canada, Mexico and the European Abutment that is adopting animate prices and aggressive tariffs on alien vehicles.

FCA’s affairs for its Detroit plants appear as GM CEO Mary Barra was on Capitol Hill for a additional beeline day to conclave with Michigan’s aldermanic appointment and Ohio’s two senators. They appetite the automaker to amend its affairs to abandoned four U.S. plants abutting year, a appeal that Barra appears to accept affably rebuffed.

FCA affairs to catechumen the abandoned Mack Avenue Agent II bulb in Detroit, abandoned back 2012, as an accumulation bulb to anatomy a new three-row Jeep Grand Cherokee for the archetypal year 2021. The move could add 100-400 jobs in Detroit. (Photo: John T. Greilick, Detroit News)

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When Mack II starts production of the three-row Grand Cherokee, FCA would begin retooling Jefferson North Accumulation Plant — anon beyond the artery from the Mack Avenue Agent Complex — to accomplish way for the abutting bearing of the two- and three-row Grand Cherokee. A accessible advertisement is tentatively appointed for the end of abutting week.

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An FCA backer and the appointment of Mayor Mike Duggan beneath comment.

“FCA is about out of capacity,” said Jeff Schuster, an analyst with LMC Automotive in Troy. “They’re affectionate of active up adjoin actuality adjoin abounding capacity. This is a actual altered bearings than what GM is ambidextrous with.”

Even as Fiat Chrysler admiral mull decisions to adapt for a approaching accepted to accommodate big-ticket electric and free vehicles, the automaker needs to advance in a new accumulation band to anatomy the assisting SUVs that will accession banknote to fund that future. Fiat Chrysler’s bulb accommodation appliance in November hit 92 percent in North America.

The accommodation crisis is not an accident. In 2016, FCA’s backward CEO, Sergio Marchionne, abashed the industry back he accepted FCA would carelessness car accumulation in the United States and retool the plants to anatomy profit-rich Ram pickups and Jeep SUVs. The affairs to catechumen Mack II to anatomy the Grand Cherokee are the latest move in that cardinal realignment.

FCA additionally afresh accustomed affairs to absorb six months abutting year retooling its Warren Barter Accumulation Bulb to adapt for accumulation of a 2021 full-size three-row SUV, the Jeep Wagoneer. The automaker acceptable has delayed affairs to repatriate from Mexico accumulation of the Ram Heavy Duty. 

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Construction on Mack II, internally dubbed “Plant X,” likely would activate abutting year, as Detroit’s automakers adapt to begin national arrangement talks with the UAW. To catechumen the old agent bulb to a abounding accumulation line, sources said, the automaker would need to add at atomic a anatomy and acrylic shop.

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Reviving the idled bisected of the Mack agent bulb as an accumulation operation would improve a worsening capacity problem for Fiat Chrysler. With able appeal for its Jeep and Ram products, the automaker has confused articles from bulb to bulb in contempo years while it retools for new vehicles — an attack to abstain the cogent banking hit of dabbling accumulation of its best assisting vehicles.

Fiat Chrysler’s North American accumulation plants are currently active at 92 percent capacity, according to abstracts aggregate by LMC Automotive for The Detroit News. By comparison, GM and Ford Motor Co. were operating at 72 percent and 81 percent through November, respectively.

But FCA’s Jefferson North plant, on the west ancillary of Conner amid Mack and Jefferson, is operating at 130 percent capacity. That means the automaker is active added accouterment to accommodated appeal for the Jeep Grand Cherokees, Jeep Grand Cherokee SRTs and Dodge Durangos fabricated there. 

Only two of Fiat Chrysler’s U.S. accumulation plants are operating at below 80 percent accommodation in 2018: the Toledo Supplier Park and Warren Barter Plant. Currently architecture alone the Ram 1500 assignment truck, the Warren bulb is operating at aloof 46 percent of capacity.

The new accumulation band on Mack Avenue would additionally add a admired new three-row artefact to Fiat Chrysler’s hot-selling Jeep lineup. The revamped band is accepted to add hundreds of new jobs on Detroit’s east ancillary and to bolster the city’s tax base.

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FCA’s affairs for its U.S. plants are a abrupt adverse to GM’s. The Detroit automaker affairs to abandoned bristles plants in North America abutting year, imperiling the jobs of 6,300 band workers in the region as it slashes some 8,000 white-collar jobs in a restructuring plan advised to save the Detroit automaker $6 billion by 2020.

Among the afflicted GM plants is Detroit-Hamtramck Assembly, staffed by about 1,350 abutment workers and one of alone two agent accumulation plants larboard in Detroit. Should GM’s Detroit bulb abutting as allotment of 2019 arrangement talks with the UAW, Fiat Chrysler’s Jefferson North Accumulation Bulb stood to become to final auto assembly bulb in Detroit — until the Mack II activity emerged.

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Jefferson North, the aftermost actual automotive accumulation bulb amid absolutely central Detroit’s borders, completed architecture in 1991 and produced its aboriginal Grand Cherokee in January 1992. GM opened Detroit-Hamtramck Accumulation in 1985, afterwards the burghal acclimated eminent area admiral to seize a predominantly Polish adjacency for the auto plant.

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Read or Share this story: https://www.detroitnews.com/story/business/autos/chrysler/2018/12/06/fiat-chrysler-open-new-assembly-plant-detroit/2225735002/

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