Fiat plans to reopen idled Detroit engine plant to build new Jeep

Fiat Chrysler 'plans new US factory'

Fiat Chrysler Automobiles is planning to convert an engine plant that has been idle since 2012 into an auto-assembly plant, in what would be the first auto-assembly line to open in Detroit in 27 years, the Detroit News reported.

The planned revival comes on the heels of General Motors Co.'s announcement last week that it will cut more than 14,000 jobs and close five North American factories next year as part of a sweeping realignment to prepare for a future of electric and self-driving vehicles.

The facility, known as the Mack Avenue Engine II plant, was opened in 2000 to manufacture engines for Jeeps and trucks, then idled in 2012 as Chrysler replaced those engines with ones made in MI and Mexico.

Last week, Trump demanded GM add a new product at a plant in OH targeted for closure and later threatened to cut electric vehicle subsidies. Fiat told the WSJ that this focus was due to consumer interest, which has shifted away from smaller passenger cars.

Fiat Chrysler reportedly plans to open a new assembly plant in Detroit; Sears Chairman Eddie Lampert has offered to buy the company out of bankruptcy for an estimated $4.6 billion.

The Mack Avenue Engine II plant is now idled.

According to USA media, the plant would start producing its Jeep sports utility vehicles (SUVs) in 2020, and create up to 400 jobs.

Italian automaker Fiat had started buying up shares in Chrysler in 2009, when the American auto company filed for bankruptcy.

Fiat Chrysler declined to comment Thursday.

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