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FCA Announces Significant Manufacturing, Product Investments

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Article Highlights

  1. "Fiat Chrysler today began executing on ambitious plans laid out last June, just before the unexpected death of then CEO Sergio Marchionne," said Michelle Krebs, executive analyst, Autotrader.
  2. "The Jeep and Ram brands have driven FCA’s financial success over the past decade," said Karl Brauer, executive publisher, Autotrader and Kelley Blue Book.
  3. "FCA has made great strides to cut debt and improve industrial free cash flow that enables them to make capital expenditures of this magnitude," said Zo Rahim, manager, Cox Automotive Economics and Industry Insights.

Fiat Chrysler Automobiles N.V. (FCA) today confirmed a number of major manufacturing and product commitments for Michigan and the city of Detroit. The $4.5-billion investment package includes new factories and additional capacity to support products for the Dodge, Jeep and Ram brands. It also includes 6,500 new jobs in the state. A press release from FCA can be found here.

We’ve included commentary from Cox Automotive experts below.

Michelle Krebs, executive analyst, Autotrader
Fiat Chrysler today began executing on ambitious plans laid out last June, just before the unexpected death of then CEO Sergio Marchionne. The company’s five-year plan focuses the bulk of its investment on four global brands, led by Jeep. The new Jeeps to be built in the Detroit area also deliver on Fiat Chrysler’s promise to begin electrifying its product line, a necessity particularly for China and Europe.

Watch Michelle Krebs on Detroit’s Flashpoint

Michelle Krebs and Daniel Howes, business columnist at The Detroit News, discussed Fiat Chrysler’s plans to invest in Michigan plants the Flashpoint segment on Detroit’s WDIV Channel 4. Watch here.

Karl Brauer, executive publisher, Autotrader and Kelley Blue Book
The Jeep and Ram brands have driven FCA’s financial success over the past decade. Investing in these brands and modernizing them with electrification technology will underpin FCA’s future growth. Ram continues to benefit from ongoing truck demand in the U.S., while Jeep is a globally recognized American icon with expanding potential in China, India, Europe and Brazil. And while every modern automaker has to think globally, growing these brands through an investment in Detroit illustrates FCA’s celebration of its American heritage.

Zo Rahim, manager, Cox Automotive Economics and Industry Insights
FCA has made great strides to cut debt and improve industrial free cash flow that enables them to make capital expenditures of this magnitude. Though this will impact future free cash flows, they’re in a favorable position to see this plan through. This commitment to Jeep and Ram is a smart, long-term investment for FCA and great news for the city of Detroit.

If you would like to speak with one of the expert analysts from Autotrader, Kelley Blue Book or any member of the Cox Automotive Industry Insights team, please contact us.

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