Michigan, Detroit approve FCA's $2.5B factory expansion plan

The city has not benefited from a new automotive factory in decades.

Authorities in Michigan and Detroit have approved Fiat Chrysler Automobiles' $2.5 billion factory expansion plan in the city.

The company will invest $1.6 billion to build a new assembly facility at its Mack Avenue site, while $900 million will be spent on upgrades to the Jefferson North Assembly Plant.

"Thanks to the strong support of Governor Whitmer, the Michigan Economic Development Corporation and city of Detroit, I am pleased to confirm that plans to invest in our Jefferson North Assembly Plant and build a new state-of-the-art assembly plant in Detroit have been given the green light," said FCA COO Mark Stewart.

The state has agreed to an incentive package worth hundreds of millions of dollars, expecting the factory expansion to add thousands of jobs as FCA prepares to build the next-generation Jeep Grand Cherokee and a new three-row SUV.