Chrysler will spend US$165m adding a new 1m sq ft body shop to its Sterling Heights (Michigan) assembly plant. This follows the December announcement of a $850m new paint shop for the plant.

"Today marks another milestone in the rags to riches story of the Sterling Heights Assembly Plant," said Chrysler manufacturing chief Scott Garberding. "A plant that was slated to close nearly two years ago will now be a state of the art facility that will play an integral role in the success of this company by building the next generation of all new vehicles."

The investment includes the construction of the new body shop as well as the installation of equipment and conveyors that will be some of the most advanced in the industry.