Tuesday, 23 January, 2018

FCA Announces $1 Billion Investment, Employee Bonus

President Donald Trump speaks during a prison reform roundtable in the Roosevelt Room of the Washington Thursday Jan. 11 2018 Why the President just said Michigan voters are 'very happy they voted for Trump/Pence'
Sherri Watson | 14 January, 2018, 14:34

Fiat Chrysler says the move will bring Ram production to the Warren Truck Assembly Plant, along with a $1 billion investment and 2,500 new jobs.

Fiat Chrysler chief executive Sergio Marchionne a year ago raised the possibility that the automaker would move production of its heavy-duty pickups to the USA, saying tax and trade policy would influence the decision.

The special bonus will be paid to all eligible employees of the FCA automotive and components operations in the US, the OEM added. Fiat Chrysler is programmed to present a new light pickup truck, the Ram 1500, on Monday.

President Donald Trump praised FCA's announcement via Twitter on Thursday. The plan includes a total of 60,000 workers, excluding senior leadership.

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.

The investment is a continuation of a plan already announced by the automaker, which shuffled SUV and crossover production between Ohio, Michigan, and Mexico plants.

Today FCA announces an additional $1 billion investment with the decision to follow through and make the move a reality.

The decision by FCA was hailed by the U.S. Vice President Mike Pence who tweeted that manufacturing is back and is proof the America first policies of the administration are working. That investment is also expected to be completed by 2020.

"Macomb County has become Dodge Ram country", Hackel said. 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. "This is an awesome statement".

The stock jumped more than 20 percent last week on a bullish outlook for the auto sector and media speculation that Chief Executive Sergio Marchionne's final year at the helm could prompt strategic deals such as spin-offs, technology alliances and disposals.

Since June 2009, the company has invested over $10bn in its USA manufacturing operations, adding thousands of jobs to the economy in the process. 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.

The decision to put the Ram HD pickup in Warren is the latest in a series of moves by Fiat Chrysler to enhance its truck production while cutting back on passenger vehicle output.

Those investments will have added 3,700 new jobs in the USA, according to Fiat Chrysler.