Retool Plant For Ram Production Costs Fiat Chrysler Automobile $1.5 Billion

Jul 29, 2016 06:17 AM EDT | Jess Christian Ramirez

Automobile company Fiat Chrysler Automobile (FCA) plans to invest $1.48 billion to convert its sub-urban Detroit Sterling Heights Assembly plant. This retooling will make the assembly plant ready for the unibody to body-on frame construction of its next generation Ram 1500 pickup. FCA also confirmed that its Chrysler 200's production ceases in December to make way for the said conversion.

According to Mike Manley, head of FCA's Jeep and Ram brands, FCA is looking into large-scale manufacturing of SUVs which will be based on its Ram 1500. These SUVs eyes to compete against leading models such as Chevrolet Tahoe and as well as make way for the creation of smaller pickup trucks which would then compete with the leading segment-leading Toyota Tacoma along with the Chevy Colorado and GMC.

Manley also posits that the current Ram 1500 platforms can be used for a body-on-frame SUV. With larger SUVs, FCA would then be able to capitalize and go head-to-head with Generl Motors and Ford for the growing SUV market.

With the Ram pickup trucks expected release in early 2018, FCA also said that it also looks into the possibility of moving the production of the Ram 1500 from their plant in Warren to Sterling Heights, both of which are located in Michigan; however there are still no official plans released from the Warren Truck Assembly Plant regarding the said transfer. In a report, the transfer will allow the Warren plant to convert for the production of the Jeep Wagoneer and the Grand Wagoneer SUVs.  

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