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For many years the two most prominent nicknames for Detroit -- Motor City and Motown -- seemed to ring a bit hollow. By 1972, Berry Gordy had moved Motown to Los Angeles. And most car plants made a mad dash out of town. The monikers became more memory and affection than reality.
Now, for the first time in nearly 30 years, a new car assembly plant is slated to be built in Detroit.
On Tuesday, at city hall, before a packed room of politicians, media, Fiat Chrysler Automobiles officials and UAW members, Mayor Mike Duggan announced FCA's plan to spend $1.6 billion to convert the current Mack Avenue Engine Plant on the city's east side into an assembly plant for production of the next generation Jeep Grand Cherokee and an all-new three-row, full size SUV and plug-in hybrid models. That would create 4,000 jobs.
Additionally, another 1,000 jobs will be created when Fiat Chrysler invests $900 million to modernize its Jefferson North Plant where Jeep Cherokees are being churned out. The firm also plans to invest in other plants in Michigan, which will add another 1,500 jobs in the state.
“This is the way the city of Detroit fights unemployment and poverty,” Mayor Mike Duggan said of the Mack Avenue assembly plant. “Standing here today, to be back in the city of Detroit, is truly remarkable.”
With all the excitement in the room, there was a little caveat -- or potentially a huge one -- to FCA building the new assembly plant: The city has 60 days to acquire 200 acres of nearby land to hand over to FCA. The company owns the land for the plant, but needs additional acreage for things like parking, parts and storing new vehicles.
One big challenge is that the city can't go to court if necessary to seize land. It will be forced to negotiate with owners.
The city owns some of the land in question, but one of the potentially difficult challenges will be working out a deal with another landowner -- the Moroun family, which owns the Ambassador Bridge, and up until recently, the decaying train station that Ford bought.
Duggan acknowledged it might be challenging, but noted that deals have been worked out in the past with the Morouns. No one really said much about failing at that task.
Mark Stewart, chief operating officer of FCA, talks about the envisioned factory. (Photos: Michael Lucido)
In the past 10 years, only four auto assembly plants have been built in the U.S:
- Toyota: Blue Springs, Miss. (2011)
- Volkswagen: Chattanooga, Tenn. (2011)
- Volvo: Ridgeville, S.C. (2018)
- Mazda/Toyota: Huntsville, Ala.
The news comes months after General Motors, the only major car company headquartered in Detroit, announced plans to shut the Detroit-Hamtramck plant.
Ron Bieber, president of the Michigan AFL-CIO, reacts to the announcement and the firm's plans to upgrade other Michigan facilities:
“The announcement made today by Governor Whitmer, Mayor Duggan and FCA is great news for the Michigan’s working families. This investment will bring thousands of good-paying union jobs that are essential to rebuilding the middle class and creating an economy that works for everyone.
:We know the great skill and hard work that union men and women put into making Michigan the auto capital of the world. I know with Governor Whitmer’s, leadership our brothers and sisters are ready to help Michigan keep that title.”
