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Jeep Factories Getting a $1 Billion Upgrade

4325 Views 15 Replies 5 Participants Last post by  BlackHawk

Fiat Chrysler Automobiles is planning to spend $1.05 billion retooling two of their factories in the future, probably in preparation for the next generation Wrangler and other future Jeep models that are set to come out soon.

Announced on Thursday, FCA plans to invest $700 million into their Toledo North factory next year where the next generation Wrangler is set to be built and eventually create around 700 new jobs. This Wrangler factory is just one part of a larger multi-site complex in Ohio and plans for the South factory will be announced at a later date.

As for FCA’s factory in Belvidere, Illinois, the company plans to spend $350 million on the retooling of this factory and create an additional 300 jobs there.

A sound investment with the Belvidere factory because FCA is planning to move the Jeep Cherokee production from the Toledo plant to Illinois in 2017. That will free up space to build the new Wrangler in Toledo without having to interrupt the outgoing model’s production.

Currently, the Toledo North factory is producing the Wrangler while the South factory is producing the Cherokee. Once the Cherokee production is shifted to Illinois, FCA will have a plant open for another model. They could possibly build the much anticipated Jeep pickup that’s set to launch early 2018 in the south building. We can expect to hear about the Toledo South plant changes near the end of this year’s third quarter.

The large investments may be part of Jeep’s plan to prepare for future demands. The brand’s sales have strong with a global sale of 1.2 million vehicles in 2015 and in the first half of this year, they managed to sell 468,131 Jeeps in the U.S. alone, that’s a 16.5% increase in sales and the number is expected to go up once the next generation Wrangler goes on sale.
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Not surprised they invested so much, this gen of the wrangler is going to be big, wider audience and wider appeal, the current gen already does well enough. this is one of those investments FCA can feel safe about.
The new Jeep Wrangler Pickup is extremely highly anticipated. You're taking the king of off-road vehicles and making it a darn pickup, that's a huge deal. But this is pretty cool, and creating another 1000 jobs overall.. That works out for everyone. Understandably, it's not a lot, but... it's something that'll help
I mean... 1000 jobs isn't such a major thing but you're right, the Wrangler Pickup I think will sell like hot cakes
IS the trackhawk going to be produced in one of the plants that're getting the upgrade?
I wouldn't doubt it.. as we've already seen a test mule without camo, I'm sure production is the biggest thing now so they should be accommodating for the new Track Hawk
Which new vehicles do you see coming up that pose competition ??
Can't really think of any unless Ford decides to come out with the Bronco.
infiniti might be one brand to look out for depending on how they plan to revamp their SUV line up, a number of them are due for a next generation model.
Nah, Infiniti's new red sport engine isn't really a challenge for the Hellcat and they don't really want to compete with the higher power models.
Definitely not Infiniti. They're just going to try and hit that luxury-performance segment but not performance to this extent. It's just not what they do or are known for. I find they're more all arounders rather than specific goal oriented.
Considering the recent elections, I wonder what direction Ford is going to take with tall their plans for the factory though. A lot of things are going to change for companies in the States now that nearly everything is up in the air. It'll be a while before the dust starts to settle and we can get a clearer view of the climate..
Now that is a good question. A lot of work is outsourced for the obvious reasons that it's just all around cheaper. Taking things away and trying to bring it back to the states is going to pose a lot of difficulties. But that being said, it's going to need to passed through a lot of people first before actually getting put into action.
I doubt much is going to change with how vehicles are produced. There's just a lot of repercussions if automakers were to be slapped with tariffs made outside of the US. End of the day, we're still getting a quality product at a fair price.
Well that's just one engine. They are developing a next generation GT-R, so odds are that engine will end up in more than just the GT-R. The Q50 Eau Rouge was a good indication that Infinti/Nissan wants more than just one truly fast vehicle in their line up.
But none of that eau rouge stuff has been confirmed yet. As much as they may want it, it may not pose to be feasible for them.
Not confirmed but if you look at what's practical and what that brand has been doing overall its easy to see how that will one day soon be the direction they take. They executed it by keeping that "concept" as close to production as possible.

How would it not be feasible? There's a lot going for them that can justify even a soft launch to test the waters.
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