How Much Is Fiat Chrysler Investing In US? Company Announced Second Phase Of Its industrialization Plan; Michigan, Ohio Plants Getting $1B

Fiat Chrysler Automobiles announced Sunday it would invest $1 billion in plants in Michigan and Ohio, creating 2,000 jobs, but the deal will not be finalized until incentives from state and local governments have been approved.

Sunday’s announcement brings to $9.6 billion the amount the company has invested in U.S. production facilities since 2009, the company said.

FCA US said the announcement is the second phase of an industrialization plan announced last January, which called for the realignment of U.S. manufacturing operations in response to shifting demands for trucks and SUVs.

FCA said it would retool its Warren (Michigan) Truck Assembly Plant to produce the Jeep Wagoneer and Grand Wagoneer, and its Toledo (Ohio) Assembly Complex to produce its new Jeep pickup truck. The retooling is expected to be finished by 2020. The Warren investment also will allow the company to produce its Ram heavy duty truck at the plant, moving production from Mexico.

“The conversion of our industrial footprint completes this stage of our transformation as we respond to the shift in consumer tastes to trucks and SUVs, and as we continue to reinforce the U.S. as a global manufacturing hub for those vehicles at the heart of the SUV and truck market,” CEO Sergio Marchionne said.

“These moves, which have been under discussion with Dennis Williams and the rest of the UAW leadership for some time, expand our capacity in these key segments, enabling us to meet growing demand here in the U.S., but more importantly to increase exports of our midsize and larger vehicles to international markets.”

FCA previously announced a $350 million investment in its Belvidere (Illinois) Assembly Plant to produce the Jeep Cherokee, moving it from Toledo, and a $700 million investment in the Toledo complex to make the next generation Jeep Wrangler. It also announced a $1.5 billion investment in its Sterling Heights (Michigan) Assembly Plant to retool for the next generation Ram 1500.

Shares of Fiat Chrysler surged 19 percent in December despite a 10 percent drop in sales.