FCA investing US$1B to move heavy-duty truck production from Mexico to Michigan

by admin on January 11, 2018

January 12, 2018

by The Assoiciated Press

The Michigan plant will get a $1 billion cash injection as the company moves production from its Saltillo, Mexico plant. PHOTO: FCA

DETROIT—Fiat Chrysler is moving production of heavy-duty trucks from Mexico to Michigan and paying bonuses to U.S. workers in response to the passage of U.S. tax reform late last year.

The automaker will invest US$1 billion in its Warren Truck Assembly Plant to make the Ram Heavy Duty Truck starting in 2020. That truck is currently made in Saltillo, Mexico, where workers will continue to make commercial vehicles.

FCA says the Warren plant will add 2,500 new jobs.

The company also plans to pay $2,000 bonuses this spring to about 60,000 hourly and salaried U.S. employees. Senior executives won’t get the bonus.

FCA CEO Sergio Marchionne says the company should adjust its manufacturing footprint to reflect “improvement in the U.S. business environment.” He says employees should also share in the tax savings.

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