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Putting speculation to rest, FCA announced today it is spending $1 billion to retool plants in Michigan and Ohio to make the Jeep Wagoneer, Grand Wagoneer, and a Jeep pickup by 2020. The Warren truck plant currently makes Ram pickups but the trucks are moving to the Sterling Heights plant in Michigan and Warren is being retooled to make add an all-new Jeep Wagoneer and Grand Wagoneer at the top of the Jeep lineup, competing with high-line Land Rovers. “The conversion of our industrial footprint completes this stage of our transformation as we respond to the shift in consumer tastes to trucks and SUVs, and as we continue to reinforce the U. as a global manufacturing hub for those vehicles at the heart of the SUV and truck market,” said , FCA’s CEO, in a statement, noting he has worked with the UAW on the plans.

This is part of the second phase and reflects FCA’s emphasis on trucks and SUVs as it downsizes its car lineup. S., although it did not not change plans to build its small cars in Mexico.

Marchionne said the plant moves means FCA “will finally have the capacity to successfully penetrate markets other than the U. which have historically been denied product due to capacity constraints.” FCA is negotiating government incentives for the investment.

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