Fiat Chrysler to invest over $1 billion in Ram Truck plant

FCA Warren Truck Plant Ram 1500 Assembly Line

Why the President just said Michigan voters are 'very happy they voted for Trump/Pence'

Fiat Chrysler also announced it would give a $2,000 bonus to around 60,000 employees.

These announcements reflect our ongoing commitment to our US manufacturing footprint and the dedicated employees who have contributed to FCA's success.

But besides potential mergers, a stable pricing environment, solid volume growth and the recently announced US corporate tax reform could underpin auto stocks such as FCA this year, J.P. Morgan said last week.

The bonuses will be reimbursed in the second quarter of 2018 in inclusion to any payback apportion or achievement associated bonuses.

President Donald Trump issued two tweets on Thursday approving of the FCA news. He said a "spillover" effect will likely mean new homes being constructed, along with the city's plans to build a mini-City Hall in the Nine Mile-Van Dyke area.

Fiat Chrysler will be moving the production of its Ram heavy-duty truck from Mexico to MI and giving its workforce a substantial bonus due to tax reform.

FCA's investment announcement related to the production of its next-generation Ram Heavy Duty pickups.

Fiat Chrysler stated would create 2,500 jobs at a factory in Warren, Michigan, near Detroit and invest $1 billion in the facility.

The company said the investment announced Thursday is separate from a 2015 labor deal with the United Auto Workers union. The Mexican plant will be "repurposed to produce future commercial vehicles" for sale global markets.

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.

The company said that truck production will relocate from Mexico to MI in 2020. FCA said this was on top of a large investment at the Warren factory announced previous year.

Fortune points out the move could also protect Fiat Chrysler from hefty fees if Trump decides to pull out of the North American Free Trade Agreement, or NAFTA. FCA had pledged to invest $5.3 billion in American plants to guarantee additional union jobs as part of that agreement.

What's more, FCA said it would pay a $2000 bonus to 60,000 hourly and salaried employees, which the company said was made possible by a huge corporate tax cut enacted late a year ago. It will be made in addition to any profit sharing and performance bonuses. They support production in the Jeep and Ram lines, and will also help bring three new Jeep models to plants in OH and MI.

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.

Latest News