With FCA investing in Michigan, many question future of Brampton facility

A rendering is of the new Mack Avenue Assembly Complex. Photo courtesy of FCA.

Last week, Fiat Chrysler Automobiles (FCA) announced a US$4.5 billion investment in its Michigan plants. The automaker is set to build a new assembly plant in Detroit while adding production at its five current Michigan-based facilities, creating approximately 6,500 new jobs.

The company says this move will increase capacity to meet growing demand for its Jeep and Ram brands, including production of two new Jeep-branded white space products, as well as electrified models.

In response to a shift in consumer demand toward SUVs and trucks, the company discontinued compact car production and retooled plants in Illinois, Ohio and Michigan to make full use of available capacity to expand the Jeep and Ram brands. But many analysts are questioning what this means for the Brampton Assembly plant, which employs 3350 and only produces passenger cars such as Chrysler 300/300C, Dodge Charger, and Dodge Challenger.

This is particularly significant seeing as Canada's vehicle assembly sector has seen a decline in investment over the past decade. It also comes on the heels of GM's decision to close its Oshawa facility.

FCA said in its announcement that the new assembly plant will be the first built in Detroit in almost three decades. Overall, the automaker has committed to invest nearly US$14.5 billion in its U.S. manufacturing operations, creating nearly 30,000 new jobs since June 2009.