Fiat Chrysler has begun construction on a $1.6-billion assembly plant on the site of its existing Mack Avenue Engine Plant in Detroit. The plant will produce the Jeep Grand Cherokee, a new Jeep SUV and hybrid automobiles. Contractor Walbridge Aldinger Co. referred all questions about the project to Fiat Chrysler, citing a nondisclosure agreement. Construction is anticipated to be completed by late 2020, and Fiat Chrysler said it expects to begin producing vehicles there for the 2021 model year. This investment gives Jeep the opportunity to enter two underserved segments that will offer significant margins, “and will enable new electrified Jeep products, including at least four plug-in hybrid vehicles and the flexibility to produce fully battery-electric vehicles,” says Mike Manley, chief executive officer of Fiat Chrysler. Fiat Chrysler’s nearby Jefferson North Assembly Plant will receive a $900-million modernization and retooling to build the Dodge Durango and another line for Jeep Grand Cherokees. Fiat Chrysler’s Warren, Mich., truck facility is getting a $1.5-million investment to produce the Jeep Grand Wagoneer.