ibusinesslines.com
ibusinesslines.com January 20, 2018


FCA Relocating Ram Heavy Duty Truck Production to US

14 January 2018, 02:58 | Kelvin Horton

Fiat Chrysler also announced it would give a $2,000 bonus to around 60,000 employees. Bill Pugliano Stringer Getty Images

Fiat Chrysler also announced it would give a $2,000 bonus to around 60,000 employees.    Bill Pugliano  Stringer   Getty Images

The news came in a January 11 press release detailing that the investment means the automaker will add 2,500 jobs at the MI plant.

If the U.S. exits the NAFTA, it could mean that automakers would pay a 25 percent duty on pickup trucks assembled in Mexico and shipped to the US. At the time, CEO Sergio Marchionne noted that Fiat Chrysler hadn't made a final decision on moving production of heavy-duty trucks from Mexico, saying Trump's policies could factor into the final decision.

The company said that truck production will relocate from Mexico to MI in 2020.

The investment is a continuation of a plan already announced by the automaker, which shuffled SUV and crossover production between Ohio, Michigan, and Mexico plants.

On Wednesday, Toyota Motor and Mazda Motor announced they would construct a new $1.6 billion joint venture auto assembly plant in Alabama, drawing praise from Donald Trump.

Fiat Chrysler said the actions were made possible in part by passage of the US tax reform legislation. The special bonus will be paid to all eligible employees of the FCA automotive and components operations in the US.

The Italian-owned FCA's announcement comes one day after Japanese-owned Toyota and Mazda said it will build an assembly plant in Alabama that will create approximately 4,000 jobs in the Huntsville area.


The company also said it'll give a $2,000 bonus to 60,000 of its USA employees. In January 2017, the company said it would spend $1 billion to expand factories in OH and MI, creating 2,000 jobs total.

Fiat Chrysler Automobiles is feeling good about tax reform. That was in addition to US$380 million announced by the state in tax abatements, investment rebates and the construction of a worker training facility.

While other mainstream auto brands head for sliding USA demand this year, Jeep is rolling out new models to buck the trend and bring 16 straight months of sales declines to an end.

The all-new 2019 Ram 1500 will make its debut at the North American International Auto Show in Detroit next Monday.

Friday I reported that stock funds brought in $24-B in the 1st week of Y 2018, marking the 6th-biggest inflow ever and the most in at 6 months.

But while Marchionne acknowledged previous year that Jeep and truck brand RAM could stand on their own, he has never said he was considering spinning them off and has repeatedly warned that he has to worry about the "stump that's left behind" if he parts ways with FCA's most profitable parts.



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