UK-based automotive manufacturer Fiat Chrysler Automobiles plans to start constructing a new $1.6 billion assembly plant in Detroit, U.S.

The proposed new plant, which currently operates as an engine facility, hinges on the city of Detroit buying 200 acres of land by April 27 that Fiat Chrysler needs for new vehicle storage, employee parking as well as staging trucks delivering parts.

Moreso, months before announcing plans to build a sport-utility vehicle factory on Detroit's east side, Fiat Chrysler approached General Motors (GM) about buying the Detroit-Hamtramck assembly plant that GM had plans to idle.

The proposed assembly plant is part of the company’s $4.5 billion commitment announcement in five Southeast Michigan plants in late February.