The Latest: Detroit offering $12M in tax cuts for car plant

DETROIT (AP) — The Latest on Fiat Chrysler’s plan to expand in Michigan (all times local):

2:20 p.m.

The city of Detroit’s incentives for Fiat Chrysler to build a new assembly plant include $12 million in tax abatements over a dozen years and 200 acres (80 hectares) of land.

Mayor Mike Duggan’s office said Tuesday that the city will work with the state on other incentives for the automaker’s $1.6 billion investment to convert its Mack Avenue Engine Complex into a new facility.

Detroit has 60 days to get the land, 170 acres (68 hectares) of which is owned by the city, a power utility, a public water authority and a family of prominent wealthy businessmen. Duggan said the city has limited funds and hopes to primarily use land swaps to acquire the properties. Environmental reviews of the land also are required.

No residents are expected to be displaced by the project.


2 p.m.

Gov. Gretchen Whitmer says it has been a long time since Michigan has seen an automotive investment as “big and transformative” as Fiat Chrysler’s plan to add about 6,500 jobs in Detroit and surrounding suburbs.

At a news conference Tuesday with Detroit Mayor Mike Duggan and other officials, Whitmer applauded the automaker for “taking a great bet” on the state. She says the $4.5 billion investment would have ripple effects in Michigan and other Midwest states, boosting the automotive industry and helping other non-auto businesses.

Fiat Chrysler chief operating officer Mark Stewart says it would be the company’s single largest investment in its U.S. manufacturing operations in a decade. It wants to begin constructing a new assembly plant in Detroit in the second quarter of this year.


1 p.m.

Detroit has 60 days to assemble 200 acres (80 hectares) of land where Fiat Chrysler can implement a proposed major expansion within the city.

A memorandum of understanding signed Tuesday between Detroit and the automaker outlines terms of the deal.

Mayor Mike Duggan says the land will have to be bought with the cooperation of landowners because the government can no longer use eminent domain powers for auto plant projects. He says the automaker is on a very tight schedule, but Detroit must act to land 5,000 jobs with an average wage of $58,000.

Fiat Chrysler said Tuesday it will bring 6,500 new jobs to Detroit and its suburbs in a $4.5 billion investment.

Duggan says they “are the kinds of jobs we need to bring back to the city.”


11:40 a.m.

Fiat Chrysler says it plans to roughly double its hourly workforce in Detroit as part of a $4.5 billion investment that will add about 6,500 jobs in the city and surrounding suburbs to build all-new or next-generation SUVs.

The company said Tuesday it will reopen a shuttered engine plant in the city and convert another in the same complex into a future assembly plant for the Jeep Grand Cherokee and a new, three-row, full-size Jeep SUV and plug-in hybrid models.

That complex is expected to add 3,850 jobs. Another 1,100 new jobs are expected to be added at FCA’s Jefferson North Assembly, and roughly 1,500 new jobs at facilities in the neighboring suburb of Warren.

Fiat Chrysler says it’s working with city and state officials on tax incentive packages.

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