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Fiat-Chrysler to invest billions of $ in Michigan factories.

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Petrolheadia
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Fiat-Chrysler to invest billions of $ in Michigan factories.

Postby Petrolheadia » Tue Feb 26, 2019 3:44 pm

https://www.autonews.com/manufacturing/ ... eep-models

Despite the wildly-circulating news of Michigan's decay and loss of American manufacturing, as well as GM's recent plant closures, Fiat-Chrysler Automobiles decided to invest $4.5 billion in manufacturing in the state in order to create 6500 jobs.

The main part of the plan is a $1.6 billion makeover of the Detroit Mack Avenue complex, which will be retooled to produce cars for the now-booming large crossover sector - a 3-row one (likely the upcoming Jeep (Grand) Wagoneer) and the 5th generation Jeep Grand Cherokee. Detroit has pledged to contribute to the deal with a $12 million property tax rebate.

The company is also planning a $1.5 billion investment in the Warren plant, which, instead of producing Rams, as originally planned, will manufacture Jeep Wagoneers and Grand Wagoneers.

Besides that, another Detroit plant will get a $900 million makeover to make Grand Cherokees and Dodge Durangos, and the Dundee plant will be making Pentastar engines after a $119 million makeover.

Rep. Debbie Dingell twitted that "“I want to thank them for their commitment to production in the US. Their investment decisions are an important part of keeping this country at the forefront of innovation and technology in transportation and mobility."

What do you think, NSG? Will it help put the area on the right track?

I think that while it will be a benefit to the area, FCA's decision ultimately won't turn Michigan's fortunes around. However, it will be a sign of FCA's and the crossover segment's meteoric growth.
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Postby Vassenor » Tue Feb 26, 2019 3:47 pm

I'm guessing Trump will try to take personal credit for this when he needs a convenient distraction from something.
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Trollzyn the Infinite
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Postby Trollzyn the Infinite » Tue Feb 26, 2019 3:47 pm

Long overdue, imo.
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Postby Trollzyn the Infinite » Tue Feb 26, 2019 3:48 pm

Vassenor wrote:I'm guessing Trump will try to take personal credit for this when he needs a convenient distraction from something.


There was literally no reason to even mention him. Jesus Christ, you remind me off my mother - always trying to find the bad in the good.

What a depressing worldview you must have.
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Postby Petrolheadia » Tue Feb 26, 2019 3:49 pm

Trollzyn the Infinite wrote:
Vassenor wrote:I'm guessing Trump will try to take personal credit for this when he needs a convenient distraction from something.


There was literally no reason to even mention him. Jesus Christ, you remind me off my mother - always trying to find the bad in the good.

What a depressing worldview you must have.

DAE orange man bad?
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Postby Andsed » Tue Feb 26, 2019 4:57 pm

This looks like a good start but I think more will have to be done. But still this seems like a good start.

Vassenor wrote:I'm guessing Trump will try to take personal credit for this when he needs a convenient distraction from something.

Was there really a need to bring up Trump here?
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Postby Washington Resistance Army » Tue Feb 26, 2019 5:02 pm

Good news all around. Michigan could really use this.
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Postby Free Arabian Nation » Tue Feb 26, 2019 5:15 pm

Trollzyn the Infinite wrote:
Vassenor wrote:I'm guessing Trump will try to take personal credit for this when he needs a convenient distraction from something.


There was literally no reason to even mention him. Jesus Christ, you remind me off my mother - always trying to find the bad in the good.

What a depressing worldview you must have.

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Postby Serbia-Macedonia » Tue Feb 26, 2019 5:18 pm

My mom owned a 2002 Chrysler Sebring sedan...then she sold it and Chrysler stocks crashed and then Fiat bought it.


What a difference my mom can make!

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Postby Novus America » Tue Feb 26, 2019 5:24 pm

Serbia-Macedonia wrote:My mom owned a 2002 Chrysler Sebring sedan...then she sold it and Chrysler stocks crashed and then Fiat bought it.


What a difference my mom can make!


Though ironically FIAT is now dying.
https://www.google.com/amp/s/www.forbes ... ricas/amp/

FIAT bought Chrysler, and now FIAT is dying.
And FC does not seem to be investing much in it.
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Postby The Galactic Liberal Democracy » Tue Feb 26, 2019 5:28 pm

Free Arabian Nation wrote:Welcome to the internet, where we'll take an image of kittens and somehow manage to bring up HITLER.

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Postby Internationalist Bastard » Tue Feb 26, 2019 5:30 pm

Don’t they know Detroit is cursed
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Postby Free Arabian Nation » Tue Feb 26, 2019 5:36 pm

Internationalist Bastard wrote:Don’t they know Detroit is cursed

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Postby Rio Cana » Tue Feb 26, 2019 7:09 pm

If they are spending billions then they can afford to pay the city the $12 million tax. The autos Fiat-Chrysler makes are bad. Todays Jeeps while expensive are low quality. Some of them are even Fiats in disguise. But they sell because of the name brand. People still think they are the jeeps of decades ago.

The proof from a person who knows about such things. Videos are really short -
His opinion on Chrysler-Fiat - https://www.youtube.com/watch?v=GfDaSlECzug

and this http://www.youtube.com/watch?v=-rvu55DPWkU

His opinion on Jeeps - https://www.youtube.com/watch?v=egWnIKuf0Kc

He answers a question which involves Chrysler dealerships - https://www.youtube.com/watch?v=NlSvcu6Zzxk
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Postby Costa Fierro » Tue Feb 26, 2019 7:14 pm

Novus America wrote:
Serbia-Macedonia wrote:My mom owned a 2002 Chrysler Sebring sedan...then she sold it and Chrysler stocks crashed and then Fiat bought it.


What a difference my mom can make!


Though ironically FIAT is now dying.
https://www.google.com/amp/s/www.forbes ... ricas/amp/

FIAT bought Chrysler, and now FIAT is dying.
And FC does not seem to be investing much in it.


Ah, the cancer kills another host.
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Postby Western Vale Confederacy » Tue Feb 26, 2019 7:20 pm

Vassenor wrote:I'm guessing Trump will try to take personal credit for this when he needs a convenient distraction from something.


You’re making Trump Derangement Syndrome actually look real.

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Postby Greed and Death » Tue Feb 26, 2019 7:23 pm

But this is for the suburbs of Detroit. Detroit is still SOL. But the suburbs that have the manufacturing jobs will get more.
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Postby NeoOasis » Tue Feb 26, 2019 7:31 pm

Western Vale Confederacy wrote:
Vassenor wrote:I'm guessing Trump will try to take personal credit for this when he needs a convenient distraction from something.


You’re making Trump Derangement Syndrome actually look real.


Though he's probably not wrong. And no one would be surprised.


Personally I don't care too much what FCA does. I still find America's withdrawal from sedan production to be pretty short sighted and stupid. Cars still make up nearly 50% of new car sales, and leaving such a massive segment isn't brilliant when considering the future.

It's great they're investing in the US, and hopefully it won't backfire when gas prices go back up again.
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Postby Costa Fierro » Tue Feb 26, 2019 8:59 pm

NeoOasis wrote:Personally I don't care too much what FCA does. I still find America's withdrawal from sedan production to be pretty short sighted and stupid. Cars still make up nearly 50% of new car sales, and leaving such a massive segment isn't brilliant when considering the future.


Yes but that market has been on steady decline for a number of years now. It's why most of GM's models that won't survive beyond this year are sedans, and why Ford made the decision to ax most of its vehicle range outside of crossovers, SUV's, and pickups. Ford's decision was prompted by the fact that its sedans have less profit margins, and GM's issues was simply through a lack of demand for its models (and likely also due to GM progressively culling its customer base in the 80's, 90's, and 00's). FCA pretty much axed Chrysler's sedan range when the company was restructured after the failure of the 200/Dart, and is now banking on continued growth of the crossover, SUV, and pickup market, as essentially Jeep and RAM are the only brands keeping FCA's NA operations alive.

It's great they're investing in the US, and hopefully it won't backfire when gas prices go back up again.


Most of the new manufacturing investment is going into crossovers, which generally return the same kind of fuel economy as regular sedans, and with more practicality, better driving positions, etc.
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Postby Kaystein » Tue Feb 26, 2019 9:15 pm

Petrolheadia wrote:What do you think, NSG? Will it help put the area on the right track?

I think that while it will be a benefit to the area, FCA's decision ultimately won't turn Michigan's fortunes around. However, it will be a sign of FCA's and the crossover segment's meteoric growth.


I pray for the best possible outcome, but with our country today it wouldn't surprise me if something happens to make the "deal" fall through.

Like the CEO farting into the wind.

Because that's how fragile a "deal" is from fiat-chrysler, a branch of the same company that still owes the US government billions of dollars from 2009, when the then republican-dominated government handed chrysler, general motors, and other companies "bailouts" they really didn't need; but rather the executives, board members, and shareholders preferred so they wouldn't be inconvenienced with having to move their money around on wall street.. or, god forbid, actually spend their own money to fix a messy financial crisis many of them could be blamed for creating!

I find it laughably short-sighted of Rep. Debbie Dingell to endorse even the "minor" pledge of that $12 million in tax rebate, when Fuck all-Chrysler doesn't have to commit to the proposed amounts of money. They can change the amount spent, what it would be spent on, or abandon the deal altogether. Michigan is still legally bound to give the fucking snakes their tax rebate in any circumstance, however.

This is just another example of the present corruption in our society today, where a politician is willing to castrate themselves before a special interest, screwing over their voter base who elected the person to represent their fucking interest in exchange for fiat-chrysler's bribe money during the next election.

Politics sucks anyway, so none of this does or will surprise me
Last edited by Kaystein on Tue Feb 26, 2019 9:18 pm, edited 1 time in total.

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Postby NeoOasis » Tue Feb 26, 2019 9:35 pm

Costa Fierro wrote:
Most of the new manufacturing investment is going into crossovers, which generally return the same kind of fuel economy as regular sedans, and with more practicality, better driving positions, etc.


Not really. A modern sedan tends to get better combined fuel economy compared to equivalent crossovers. The new Nissan Altima and Honda Accord are pushing 40 miles to the gallon on the highway compared to be bit over 30 for crossovers.

Also sedans tend to be cheaper than crossovers, meaning that crossovers are frequently priced outside the range of first time car buyers. Sure they aren't as big a market as in decades past, but people tend to fall into habits. Return customers can make up a sizable portion of an automaker's customer base.

Maybe I'm a bit biased, but I have every intention of going for a sedan when it comes time for me to search for a new car again.
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Postby Costa Fierro » Wed Feb 27, 2019 2:13 am

NeoOasis wrote:Not really. A modern sedan tends to get better combined fuel economy compared to equivalent crossovers. The new Nissan Altima and Honda Accord are pushing 40 miles to the gallon on the highway compared to be bit over 30 for crossovers.


Depends on the crossover. Both companies have crossovers that have similar MPG ratings.

Also sedans tend to be cheaper than crossovers, meaning that crossovers are frequently priced outside the range of first time car buyers.


Again, depends on the crossover. The Honda Accord, for example, is priced between $23,720 - $35,950. Of the four crossovers offered by Honda, two of them are within the same price range. The HR-V ($20,520 - $28,540), and the CR-V ($24,350 - $34,150).

If we look at Nissan, the Altima has a RRP of $23,900 - $35,750. Again, there are two crossovers that are priced within the same range as the Altima: the Kicks ($18,540 - $20,870), and the Rogue ($24,920 - $32,890).

Sure they aren't as big a market as in decades past, but people tend to fall into habits. Return customers can make up a sizable portion of an automaker's customer base.


Then explain why sedan sales are on the decline and crossover sales are on the increase.

Maybe I'm a bit biased, but I have every intention of going for a sedan when it comes time for me to search for a new car again.


Individual personal preferences are usually not indicative of wider customer trends.
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Postby Unstoppable Empire of Doom » Wed Feb 27, 2019 4:33 am

It's called retooling not a makeover.

This is good news for motor City but it is still an uphill battle without the federal welfare that coastal cities get.
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Postby 95X » Wed Feb 27, 2019 9:25 am

I guess I'd be more excited if they were building public transportation buses.
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Postby The Derpy Democratic Republic Of Herp » Wed Feb 27, 2019 9:26 am

Good, they need it.

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