Fiat Chrysler to invest $1 billion in MI - adding 2'500 new jobs

Andrew Cummings
January 14, 2018

Those investments and related actions involving production shifts at three plants in Illinois, Ohio, and MI to gain capacity for the Jeep Cherokee, Jeep Wrangler, and Ram Light Duty truck, and the introduction of three new Jeep models at plants in Ohio and MI.

FCA added that it is giving a one-time bonus of $2,000 to 60,000 of its workers in the U.S.

Fiat Chrysler said the actions were made possible in part by passage of the US tax reform legislation.

Early Saturday, US President Donald Trump lauded the economy in a Tweet that pointed out Friday's stock market report while announcing that "jobs are coming back to America".

The company will relocate the truck's production from its current location in Saltillo, Mexico, to the MI plant in 2020. The payment will be made in the second quarter and is being paid in addition to profit-sharing or performance bonus payments.

The move also protects Fiat-Chrysler from tariffs if the US exits the North American Free Trade Agreement, something some negotiators and experts say looks increasingly likely. "That's wonderful", Farquhar said, noting that the investment and bonuses tell her the company is doing well.

Meanwhile, Toyota Motor Corp and Mazda Motor Corp on Wednesday announced they would build a new US$1.6 billion joint venture auto assembly plant in Alabama, drawing praise from Trump.

Farmers are big fans of heavy duty trucks, but many may not know those machines are built in Saltillo, Mexico, a manufacturing town just south of the border where other companies have plants, including John Deere. Fiat Chrysler is expected to unveil an all-new Ram 1500 pickup at the Detroit show Monday. Advisor Group Inc. now owns 15,949 shares of the company's stock valued at $101,000 after buying an additional 3,160 shares during the period. Detroit's Big Three have invested billions in MI and Macomb County in the last few years, and that's a statement to the strength of the region, he said. 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. He also has criticized automakers for moving jobs and investment in new manufacturing facilities to Mexico and prodded them to add more auto production in the United States.

"While the news is positive, the UAW is reviewing the details", Rothenberg said, noting union officials would likely have more to say later.

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