Fiat Chrysler Automobiles has received approval for tax incentives to boost Jeep production in Michigan. The deal will help support production of several new Jeep models, including the redesigned Grand Cherokee.
In total the automaker will receive $223.5 million in tax breaks and $261 million in additional support from the state of Michigan. The incentives were announced by Governor Gretchen Whitmer in a speech on Tuesday, reports The Detroit News.
As part of the incentives, FCA is committing to investing $4.5 billion into five Michigan facilities and create 6,500 jobs. One of the five facilities was announced back in February and will mark the first major automotive plant in Michigan in decades.
FCA says the new plant will be built at the site of the current Mack Avenue Avenue Engine Complex, which produces V-6 engines. This plant is expected to produce an unnamed three-row Jeep SUV starting in late 2020, then commence production of the next-generation Grand Cherokee in early 2021.
In addition, FCA will utilize the incentives to retool its Jefferson North Assembly Plant adjacent to the new plant. This facility will build the current Dodge Durango and serve as additional capacity for the next Grand Cherokee.
Finally, the Warren Truck Assembly plant will be retooled and modernized to produce the upcoming Jeep Wagoneer and Grand Wagoneer models. FCA has announced this move previously, but now it is officially part of the company’s incentive package from Michigan. The two new big SUVs are expected to go into production in early 2021.