At the same time, the automaker said it will eliminate nearly 1,400 jobs at a plant in northern Illinois.
In Detroit, the investment will help "increase capacity to meet growing demand for its Jeep and Ram brands, including production of two new Jeep-branded white space products, as well as electrified models," according to a news release from the company.
"Three years ago, FCA set a course to grow our profitability based on the strength of the Jeep and Ram brands by realigning our U.S. manufacturing operations," Mike Manley, Fiat Chrysler's chief executive officer, said in a statement. "Today's announcement represents the next step in that strategy. It allows Jeep to enter two white space segments that offer significant margin opportunities and will enable new electrified Jeep products, including at least four plug-in hybrid vehicles and the flexibility to produce fully battery-electric vehicles."