FAC to move production of the Ram HD truck to Michigan from Mexico

FAC to move production of the Ram HD truck to Michigan from Mexico

Fiat Chrysler is moving its production plant for heavy-duty RAM trucks from Michigan to Chicago. The company said that the move will add 2500 new jobs to the Detroit area. This move comes after the US tax reform last year and the favorable environment it has created.  

The company is also planning on giving its 60,000 hourly and salaried US employees $2,000 bonuses. 

“These announcements reflect our ongoing commitment to our U.S. manufacturing footprint and the dedicated employees who have contributed to FCA’s success,” CEO Sergio Marchionne said in a statement. “It is only proper that our employees share in the savings generated by tax reform and that we openly acknowledge the resulting improvement in the U.S. business environment by investing in our industrial footprint accordingly.”

FAC will be investing a total $1 billion in its Warren Truck Assembly Plant to make it operational starting in 2020. This plant will be producing the Ram Heavy Duty Truck. 

The company also stated that this move solidifies the US as a manufacturer of the Ram. Marchionne has also stated that this move responds to the favorable conditions established by last year’s tax reform. 

This move to Michigan can also be considered one that might help the Italian-U.S. automaker to cope with possible changes that may come with the North American Free Trade Agreement.

Soon after FAC's announcement, President Donald Trump hailed the decision a consequence of the tax reform. “Chrysler is moving a massive plant from Mexico to Michigan, reversing a year long opposite trend,” he tweeted on Jan 11. “Thank you, Chrysler, a very wise decision. The voters in Michigan are very happy they voted for Trump/Pence. Plenty of more to follow!”

The announcement from the automaker came only a day after the Japanese automakers Mazda and Toyota announced their plans of building a joint $1.6 billion plant in Alabama. This certainly came to Trump's attention and he praised the decision.