TOLEDO, OHIO—Chrysler Group LLC will invest $1.7 billion to develop a new Jeep sport utility vehicle and upgrade its Toledo Assembly Complex, creating 1,100 jobs.

The automaker is investing $500 million in the Toledo plant to fund a 260,000-square-foot expansion of its existing body shop and upgrades to all other areas of the assembly plant.

Work on the plant will begin in the fourth quarter of 2011 and continue through 2012, wher it will eventually build Jeep’s newest offering.

The Toledo North Assembly Plant currently builds the Jeep Liberty and Dodge Nitro, and a second production shift is scheduled to begin in 2013.