Fiat Chrysler Ponies up $1 Billion to Make Grand Wagoneer, Jeep Pickup Possible
Fiat Chrysler Automobiles has announced funding for the last piece of the Jeep production puzzle.
The automaker will spend $1 billion to retool its Toledo and Warren assembly plants in anticipation of three new models, capping off a spending spree that made this round of production plant musical chairs possible.
FCA needs to unload the cash in order to keep the Jeep Wranger pickup, Wagoneer and ultra-lux Grand Wagoneer in the production pipeline.
The funds will see the Warren Truck Plant and Toledo Assembly Complex retooled and modernized to handle the new vehicles. While the 2018 Wrangler is already bound for the Toledo plant with cash in hand, the future pickup can’t be built on the production line vacated by the Belvidere, Illinois-bound Cherokee without a switch to body-on-frame capability.
At Warren, two models in search of a home will finally be able to put down roots. The Wagoneer and Grand Wagoneer are tapped to fill out the upper echelon of Jeep’s lineup. Whether or not the Grand Wagoneer flirts with a $140,000 price ceiling remains to be seen, but at least there’s no longer a scramble to find assembly plants with excess capacity (or money).
“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 mid-size and larger vehicles to international markets,” said FCA CEO Sergio Marchionne in a statement.
The upgrades should be in place by 2020, which gives some idea of when production can commence. Roughly 2,000 jobs should be created from the investments, which will also allow Warren to build heavy-duty Ram pickups.
[Image: Fiat Chrysler Automobiles]
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- Calrson Fan Jeff - Agree with what you said. I think currently an EV pick-up could work in a commercial/fleet application. As someone on this site stated, w/current tech. battery vehicles just do not scale well. EBFlex - No one wanted to hate the Cyber Truck more than me but I can't ignore all the new technology and innovative thinking that went into it. There is a lot I like about it. GM, Ford & Ram should incorporate some it's design cues into their ICE trucks.
- Michael S6 Very confusing if the move is permanent or temporary.
- Jrhurren Worked in Detroit 18 years, live 20 minutes away. Ren Cen is a gem, but a very terrible design inside. I’m surprised GM stuck it out as long as they did there.
- Carson D I thought that this was going to be a comparison of BFGoodrich's different truck tires.
- Tassos Jong-iL North Korea is saving pokemon cards and amibos to buy GM in 10 years, we hope.
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$1 billion investment and 2,000 new jobs? Clearly a sign that FCA will die in the next six months, amirite?
They had some minivan production mules out several years ago that would run 400 miles on an 8 gallon tank. Not sure if it was between the Diamler and Cerberus era or why they never went further in developing them.