On July 26, FCA US LLC announced it will invest $1.48 billion in the Sterling Heights Assembly Plant (SHAP) to produce the next-generation Ram 1500 pickup truck. This announcement marks nearly $3 billion FCA US has invested in Sterling Heights since 2011.
The Michigan Strategic Fund today approved an alternative exemption from the State Essential Services Assessment for the Auburn Hills-based automaker valued at $11.3 million. The exclusion serves as an incentive for projects that result in significant investment in eligible manufacturing personal property. FCA US has invested $8.3 billion and created nearly 25,000 jobs in the U.S. since 2009.
The FCA US investment comes after the company reviewed other possible Midwest production locations. From an all but certain closure in December 2010, SHAP has been transformed into a world-class, state-of-the-art automotive manufacturing facility in five short years. This transformation is the product of FCA US willingness to invest over a billion in Sterling Heights, a business decision made easier due to the determination and financial commitments by Sterling Heights and its stakeholders to keep SHAP open.
“This is now the largest one-time corporate investment in the City's history, and once again validates Sterling Heights as an epicenter of economic development activity in the Metro Detroit region,” said Mayor Michael C. Taylor. “This project will generate new tax revenue for the City of Sterling Heights and the economic impact from new jobs will be significant. FCA US is a valued corporate partner in Sterling Heights employing thousands of well paying jobs improving the quality of life for not only the Sterling Heights residents but employees across the entire region. We are grateful for FCA’s long term commitment to Sterling Heights.”
“This investment is a testament to the world-class cluster of next generation mobility assets we possess here in Macomb County,” said Macomb County Executive Mark A. Hackel. “FCA is doing business all over the world, but today they made another billion dollar commitment to Macomb County, and the state of Michigan.”
Sterling Heights continues to see manufacturing and tech investment in its industrial corridor, aptly named the Sterling Innovation District. The industrial vacancy rate in Sterling Heights is currently under 1 percent and the City’s property values increased 15 percent in 2015. The City expects this positive development momentum to continue for the at least the next few years.