Fiat Chrysler Automobiles to spend $1 bn to shift production of trucks from Mexico to Michigan plant
12 Jan 2018
Fiat Chrysler Automobiles said yesterday that it planned to spend $1 billion to shift production of heavy-duty pickup trucks from Mexico to a factory in Michigan, where it will add 2,500 new jobs as a result.
The automaker further said it would award $2,000 bonuses to each of its 60,000 hourly and salaried employees in the US.
''These announcements reflect our ongoing commitment to our US manufacturing footprint and the dedicated employees who have contributed to FCA's success,'' the company's chief executive, Sergio Marchionne, said in a statement.
According to the automaker, both actions were ''made possible in part'' by the tax bill that president Trump signed into law last month. He added, ''it is only proper'' that employees share in the savings generated by the tax bill.
''We openly acknowledge the resulting improvement in US business environment by investing in our industrial footprint,'' he said.
Employees will be paid bonuses and any profit-sharing or performance-related bonuses in the second quarter of 2018.
President Trump commended the move yesterday on Twitter: ''More great news as a result of historical Tax Cuts and Reform.''
Fiat Chrysler revealed its plans to modernise the plant, in Warren, Michigan, on the eve of the North American International Auto Show in Detroit, which is to open to the media and industry visitors on Sunday.
CEO Sergio Marchionne said in a statement that the announcements reflect the company's ongoing commitment to manufacturing in the US.
Mark Hackel, Macomb County executive, said the announcement yesterday came as part of an ongoing narrative. He added that Detroit's Big Three had invested billions in Michigan and Macomb County in the last few years, which was a statement to the strength of the region.
''This is unbelievable,'' Hackel said. ''This is an amazing statement. ... We are basically Ram county now. (Marchionne) has a big hug coming from me at the auto show next week.''
