FCA US Sterling HeightsUS – The investment will go towards retooling the Michigan assembly plant for production of the next-generation Ram 1500 pick-up truck. The factory will stop making the Chrysler 200 in December 2016 in preparation for its transformation.

The vehicle-maker said that its plans for Warren Truck Assembly Plant, which currently builds the Ram 1500, will be announced at a later date. FCA US also stated that the production action just announced is “subject to the formal approval of incentives by state and local entities”.

Earlier this month, FCA US pledged a total of $1 billion to be invested in its assembly plants in Toledo, Ohio, and Belvidere, Illinois, in support of the growth of the Jeep brand. Since 2009, the company has announced investments of more than $8.3 billion and added over 25,000 personnel (including hourly staff) at its US operations.