Fiat Chrysler Automobiles (FCA) announced on January 11, 2018, that it would move production of its next-generation Ram Heavy Duty pickup from Saltillo, Mexico, to Warren, Michigan, in 2020.
The plan
- More than $1 billion to modernize Warren Truck Assembly Plant.
- 2,500 new jobs at the plant, on top of jobs announced in January 2017 for the Jeep Wagoneer and Grand Wagoneer.
- The Saltillo plant would be repurposed to build future commercial vehicles for global distribution.
- A $2,000 bonus for about 60,000 USA hourly and salaried employees, excluding senior leadership.
FCA said both actions were made possible in part by the federal tax reform passed in late 2017, and that it had invested $10 billion in its USA manufacturing operations since June 2009. Reuters noted that the move also lowered FCA’s risk if the USA left NAFTA, which could have meant a 25 percent duty on pickups assembled in Mexico.
FAQ
What production is moving?
The next-generation Ram Heavy Duty pickup, from Saltillo, Mexico, to Warren, Michigan, in 2020.
How many jobs?
FCA said 2,500 new jobs at Warren Truck Assembly.
Why now?
FCA cited the 2017 tax reform. Reuters also pointed to NAFTA risk.
Source & credit
Source: FCA via PR Newswire: “FCA Announces Plan to Invest More than $1 Billion in Michigan Plant, Add 2,500 New Jobs”, January 11, 2018.
Also: Reuters: “Fiat Chrysler to invest $1 billion in Michigan plant, add 2,500 jobs”; Breitbart News: “Made in the USA Again: Fiat Chrysler Moving Ram Truck Production from Mexico to Michigan”.