Detroit OKs land deals, jobs plan for Fiat Chrysler plant

DETROIT (AP) — Fiat Chrysler can move forward with plans to build a new, $1.6 million assembly plant in Detroit and invest $900 million to retool and modernize another.

Land deals and community benefits agreements tied to the project were approved Tuesday by the Detroit City Council. A Fiat Chrysler representative told state officials in Lansing that construction can begin immediately, with vehicles expected to roll off the assembly line by late next year.

The automaker also will retool and modernize its Jefferson North Assembly Plant, which will be adjacent to the new facility. The Jeep Grand Cherokee; a new, three-row, full-size Jeep SUV; and plug-in hybrid models will be built at Jefferson North.

"One of the largest auto production centers in America ... is going to be on the east side of Detroit," Mayor Mike Duggan said Tuesday. "It's going to be transformative."

For the city, it means jobs. Detroit's unemployment rate of about 8% is more than double the national average of 3.6%.

Fiat Chrysler expects to create 4,950 new jobs. Under the company's contract with the United Automobile Workers, laid-off employees get first choice, followed by temporary employees at the current plant. As part of the city's incentive package, Detroit residents then will have a four-week window to apply and be considered for any remaining jobs before they are open to anyone else.

The company has said about 4,218 jobs will be classified as front-line workers. An additional 345 will be filled by electricians, plumbers, laborers and others in the skilled trades, while 387 are expected to be supervisory positions. New employees would start work late this year or in early 2020.

The city is preparing residents for the Fiat Chrysler jobs through information sessions. They also can receive...