Fiat Chrysler will move Ram truck production from Mexico to MI

Fiat Chrysler will move Ram truck production from Mexico to MI

Fiat Chrysler Automobiles (FCAU) said late Thursday it will distribute special bonuses to USA employees and add 2,500 new jobs as a result of the tax reform bill signed by President Donald Trump.

As a result, the firm's Mexico plant, where the production of such vehicles now occurs, will be repurposed, instead being used to develop and produce future Fiat Chrysler commercial vehicles for global sale. This investment is in addition to the announcement made in January 2017, which committed to spending a portion of $1 billion in Warren Truck Assembly to expand the Jeep® product line with the addition of the all-new Jeep Wagoneer and Grand Wagoneer.

WWJ'S AutoBeat reporter Jeff Gilbert say FCA will be investing another billion on top of an earlier investment to retool the plant for the Jeep Wagoner. Fiat Chrysler said the tax plan will enable the company to invest more than $1 billion in additional funds in the factory, where it will build the next generation of Ram heavy-duty pickup trucks once production shifts from Mexico in 2020.

FCA's initial investment in Warren for the Wagoneers was announced in January 2017. Other companies, including AT&T, Comcast and Bank of America have announced $1000 bonuses because of the tax cut, according to a list compiled by USA Today.

Time for Afghanistan to make contributions in war against terror: DG ISPR
He also said Pakistan has the ability to address terrorist threats inside the country. He stressed effective border management with Afghanistan to curb terrorist movement.

Fiat/Chrysler says the tax plan will also mean the return of manufacturing jobs to the USA from Mexico.

Those investments and related actions involved production shifts at three plants in Illinois, Ohio and MI to gain capacity for the Jeep Cherokee, Jeep Wrangler and Ram Light Duty truck, and the introduction of three new Jeep models at plants in Ohio and MI. Typically, U.S. automakers only pay bonuses to hourly workers as part of collective bargaining agreements.

The automaker credits US tax reform legislation for helping make the additional investment possible. About 90 percent of the Ram heavy-duty pickups made at Fiat Chrysler's Saltillo plant in Mexico are sold in the United States or Canada, company officials said.

The bonuses would go to 60,000 of its US employees. He says employees should also share in the tax savings.

Related Articles