Published: Sun, January 14, 2018
Finance | By Loren Pratt

FCA Relocating Ram Heavy Duty Truck Production to US

FCA Relocating Ram Heavy Duty Truck Production to US

Fiat Chrysler Automobiles plans to invest $1 billion in a suburban Detroit assembly plant that will take over production of the Ram heavy-duty pickup in 2020.

FCA CEO Sergio Marchionne on Thursday announced a $1 billion investment for the Warren Truck Plant, a move expected to create 2,500 new well-paying jobs.

Fiat Chrysler Automobiles N.V., together with its subsidiaries, designs, engineers, makes, distributes, and sells vehicles, components, and production systems.

The decision also comes amidst the continuation of negotiations between the U.S., Canada and Mexico over the North American Free Trade Agreement.

Some of the first substantial results of the 2017 tax overhaul have arrived in the form of two actions by worldwide corporation Fiat Chrysler.

The new $1 billion Warren investment, still subject to the negotiation and final approval of state and local tax incentives, will prepare the plant to build the next-generation Ram Heavy Duty truck, now made in Saltillo, Mexico.

That $3.5 billion investment 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, as well as the introduction of three new Jeep models at plants in Ohio and MI.


US Vice President Mike Pence praised Fiat Chrysler's announcement.

The investment "is a hedge by FCA against the increasing likelihood that Nafta will be dropped or renegotiated to favor manufacturing in the U.S.", Erik Gordon, a professor at the University of Michigan's Ross School of Business, said in an email. "Proof that this admin's AMERICA FIRST policies are WORKING!"

That made Fiat Chrysler the third-largest producer of vehicles in Mexico a year ago, after Nissan Motor Co and General Motors Co.

"Most such events known to FCA US reportedly occurred at idle or while starting, turning, or driving at low, steady speeds", the automaker said. It also announced $2,000 in bonuses for workers, which it attributed in part to the new Republican tax bill that Mr. Trump signed before Christmas. "Congratulations Alabama!" Trump tweeted on Wednesday. More than 700 new jobs will be added to support production.

FCA, like Ford and GM, will soon announce profit-sharing bonuses for hourly employees.

"If there ever was a slam-dunk deal, this is a great one", Battle said. More interesting news about Fiat Chrysler Automobiles N.V. (NYSE:FCAU) were released by: Streetinsider.com and their article: "UPDATE: JPMorgan Upgrades Fiat Chrysler Automobiles NV (FCAU) to Overweight" published on January 05, 2018 as well as Bloomberg.com's news article titled: "Fiat Chrysler Recalls 1.48 Million US Pickups" with publication date: December 22, 2017.

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