FCA to Turn Detroit Engine Plant into Jeep Factory

December 06, 2018 at 4:19 PM

Fiat Chrysler Automobile NV plans to reopen an idled engine plant in Detroit to make a new three-row Jeep Cherokee SUVs, according to multiple reports.

The reports say FCA aims to begin production at its Mack II factory for the 2021 model year. The plant was mothballed in 2012 after the 3.7-liter V-6 engine it built went out of production. Reviving it would create as many as 400 jobs, according to The Detroit News.

Adding Cherokee production at the Mack plant would enable FCA to retool its nearby Jefferson North assembly plant for the next-generation two- and three-row Cherokee while minimizing the disruption of output of the highly profitable vehicles.

LMC Automotive tells the News that FCA’s North American factories are running at 92% of capacity. That compares with 72% for General Motors and 81% for Ford.