When Fiat Chrysler announced its decision to move production of the Ram Truck plant from Mexico to Michigan, President Donald Trump tweeted praise for the company's "very wise decision" and a promise of more to follow.
Macomb County Executive Mark Hackel says he's "excited" about heavy-duty Ram production joining the Dodge Ram light truck, which is made at nearby Sterling Heights Assembly.
The Italian-American automaker will pay each US hourly and salaried employee a $2,000 bonus in the second quarter of 2018. The release also announced special bonus payments of $2,000 to approximately 60,000 of Fiat Chrysler's US employees (the release made sure to mention the bonuses excluded "senior leadership").
Fiat Chrysler plans investment of $1 billion in Warren
The automaker credits USA tax reform legislation for helping make the additional investment possible.
Fiat Chrysler is recalling more than 162,000 2017 Chrysler Pacifica minivans to fix a software flaw that might cause engines to stall.More news: Ford Sued for Alleged Diesel Emissions Cheating
The Mexican plant is to be "repurposed to produce future commercial vehicles" for sale in global markets, the company said.
"These announcements reflect our ongoing commitment to our US manufacturing footprint and the dedicated employees who have contributed to FCA's success", FCA CEO Sergio Marchionne said.
About 90 percent of the Ram heavy-duty pickups made at Fiat Chrysler's Saltillo plant in Mexico are sold in the USA or Canada, company officials said.More news: Guardiola's City wary of Liverpool 'test'
Chrysler raised its output in Mexico by 39 percent a year ago to 639,000 vehicles, according to Mexican government data. JPMorgan Chase & Co. now owns 7,520,960 shares of the company's stock valued at $132,294,000 after purchasing an additional 4,669,960 shares during the last quarter.
The company announced it will also be investing $1 billion in the Warren Truck Assembly Plant, where assembly of the trucks, which are now made in Mexico, will begin in 2020.
This means that by 2020, all Ram pickups will be made in America and that also makes a great marketing pitch for a brand - especially in the full-size truck segment.More news: BlackRock Inc. Sells 1299 Shares of Sucampo Pharmaceuticals, Inc. (SCMP)
The announcement, just ahead of opening week of this year's North American International Auto Show in Detroit, isn't totally unexpected. Companies are coming back to the USA in a very big way. In early 2017, the company announced it would spend over $1 billion to pay for expanding factories in MI and OH which would create 2,000 jobs. There was no breakdown by facility, but that billion-dollar investment will also add 2,000 jobs between the two plants. They support production in the Jeep and Ram lines, and will also help bring three new Jeep models to plants in OH and MI.
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