Fiat Chrysler will reopen a factory in Detroit to build more SUVs: Report

FCA

FCA's Jeep Cherokee will come online at the old factory.

• Fiat Chrysler Automobiles will upgrade a factory in the Detroit area to build SUVs, the Detroit News reported.
• The FCA factory has been out of action since 2012.
• The US auto market has shifted toward SUVs over passenger cars in the past few years, and FCA has been ahead of the curve on retiring its sedans.

Fiat Chrysler Automobiles will re-open a factory that it took offline in 2012, the Detroit News reported Thursday.

The plant, which formerly made engines, will come out of mothballs to service the voracious US market for SUVs.

"The Auburn Hills-based automaker plans to revive Mack Avenue Engine II, which has been idled since 2012, as an assembly plant building a new three-row Jeep Grand Cherokee for model year 2021," the News reported, citing unnamed sources.

"The move could add at least 100 and up to 400 jobs in the city," the newspaper added.

FCA declined to comment on the report.

Under former CEO Sergio Marchionne, who passed away unexpectedly earlier this year, FCA shifted aggressively away from passenger cars and revamped its US manufacturing footprint to concentrate on hot-selling SUVs, crossovers, and pickup trucks.

FCA shares closed down 3% on Thursday to $16.