Fiat-Chrysler Automobiles (FCA) is planning to open an assembly plant in Detroit.
According to US media, the plant would start producing its Jeep Sports Utility Vehicles (SUVs) in 2020 and create up to 400 jobs.
The US-Italian carmaker has not confirmed the plans.
However, the company previously said it wanted to increase the production of trucks and SUVs, which recorded strong sales in the United States.
If true, the plans would be a rare internal expansion by an American automobile company in an industry where competitors are cutting production.
FCA intends to reopen an engine plant that has been put out of service since 2012 as a vehicle assembly facility, reports say.
Overall, US sales of Fiat Chrysler have increased by 8% this year, thanks to the growth driven by its Jeep line-up.
The gains come despite relatively flat sales in the broader sector, which saw sales peaks in 2016.
Last month General Motors cited the loose demand when it announced plans to halt production in five plants in North America, four of which are in the United States.
This move, part of a broader review of the activities that could lead to the loss of more than 14,000 jobs, has aroused strong criticism from politicians.
It was also a blow to US President Donald Trump, who made car production in recovery a priority for his administration.
Ford has also announced restructuring plans, although it has not specified job cuts.