Fiat Chrysler Moving Production of Ram Trucks to MI

Andrew Cummings
January 12, 2018

JPMorgan Chase & Co. set a €21.00 ($25.00) price objective on Fiat Chrysler Automobiles (BIT:F) in a report published on Friday, January 5th. That plant will be retooled to make future commercial vehicles for global export which takes advantage of Mexico having more trade agreements than the U.S. More than 2,000 jobs are expected to be added to support production of Wagoneers.

Fiat Chrysler also announced today it will pay $2,000 bonuses in the second quarter of this year to 60,000 hourly and salaried employees in the USA, excluding senior leadership. Senior executives won't get the bonus.

"These announcements reflect our ongoing commitment to our USA manufacturing footprint and the dedicated employees who have contributed to FCA's success", said Sergio Marchionne, Chief Executive Officer, FCA. He says employees should also share in the tax savings.

"Manufacturing is back", he said.

FCA said Thursday the plant expansion and special payments were made possible in part by USA tax reform passed late a year ago that will reduce the company's corporate tax bill.

President Donald Trump issued two tweets on Thursday approving of the FCA news.

GM has been readying a plant in Silao, Mexico, to build a new generation of large pickup trucks.

The company said roughly 60,000 hourly and salaried American workers will receive an additional $2,000, according to Reuters. At that time, officials noted that the Warren investment would make it easier to move Ram production to MI in the future if necessary but said no such decision had been made.

Since June 2009, the company has invested over $10bn in its U.S. manufacturing operations, adding thousands of jobs to the economy in the process.

$1 billion in the south plant of the Toledo Assembly Complex to prepare the facility to produce an all-new Jeep truck, and in the Warren Truck Assembly Plant to modernize the plant to build the all-new Jeep Wagoneer and Grand Wagoneer.

The investment means that the company will relocate the production of the truck from its current production location in Saltillo, Mexico, in 2020, the company states in a press release. Approximately 700 new jobs will be added to support production.

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