FILE PHOTO: A Fiat Chrysler Automobiles (FCA) sign is seen at the U.S. headquarters in Auburn Hills, Michigan, U.S. May 25, 2018. REUTERS/Rebecca Cook

(Reuters) - The city of Detroit said on Friday it agreed to pay $107.6 million for nearly 215 acres of land needed to construct a new $1.6 billion Fiat Chrysler Automobiles assembly plant.

The automaker also plans to invest $900 million to retool and modernize its Jefferson North Assembly Plant, enabling the creation of nearly 5,000 new jobs, the Mayor’s office said.

The cost of purchasing the land will be split between Detroit and the state of Michigan.

Earlier in the day, FCA said new U.S. pickup truck models would help achieve its 2019 profit targets and offset a weak performance in the first quarter.