Fiat Chrysler Invests $1.5 Billion to Retool for Ram Pickups

fiat chrysler dodge ram 1500

Preparations for moving Ram 1500 production are underway. Fiat Chrysler is investing $1.48 billion to retool the Sterling Heights Assembly plant in Detroit. It’s where the next-generation pickup will be built. 

The retooling involves taking the plant from a unibody construction to body-on-frame. The plant currently builds the Chrysler 200. But Chrysler gave the sedan the axe and will stop building it in December.

The next-gen Ram will go on sale by 2018. We expect the new truck will be lighter, plus feature upgraded versions of the current 3.6-liter Pentastar V6 engine and 5.7-liter HEMI V8.

FCA says in all, it’s invested over $8.3 billion and created 25,000 in the U.S. since June 2009. This includes the latest chunk of cash headed to Sterling Heights.

FCA has yet to announce what will become of the plant that builds the 1500 now, the Warren Truck Assembly Plant. Plans are expected to include retooling to build the Jeep Wagoneer and Grand Wagoneer. 

Interestingly, the investment in the retooling the Sterling Heights Assembly plant follows shortly after FCA’s last investment in the plant. That $1 billion investment retooled the plant to build the 2015 Chrysler 200. Nevertheless, the plans clearly lineup with the FCA’s goal to create more hot sellers like Jeeps and Rams and ditch slow sellers like the Chrysler 200 and Dodge Dart.

Basic supply and demand kids.

Photo Credit: FCA
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