On Thursday Fiat Chrysler said they will modernize their plant in Warren Michigan.
The Ram move should be complete by 2020. The company does not expect to make the changes to the Mexico and MI plants until 2020.
It is proper that the company's employees are able to share in the tax reform savings and that we acknowledge openly and the improvement in the business environment in the U.S.by investing accordingly in our industrial footprint, said the automaker's CEO Sergio Marchionne through a press release.
Fiat Chrysler said it would create 2,500 jobs at a factory in Warren, Michigan, near Detroit and invest $1 billion in the facility.
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.
$350 million in the Belvidere Assembly Plant (IL) to produce the Jeep Cherokee, which moved from Toledo, Ohio, in 2017. Over the same time span, the stock marked US$22.76 as its best level and the lowest price reached was US$9.01.
President Donald Trump issued two tweets on Thursday approving of the FCA news. In talks about revising the North American Free Trade Agreement, Trump's administration has proposed a requirement that 50% of all auto parts or vehicles assembled in Mexico start in the US, and fears have been renewed that the trade deal is imperiled.
Automakers and auto trade groups have actively lobbied against changes that would force them to restructure what has become a continent-wide network of assembly and component plants.
Since August, the U.S., Canada, and Mexico have been in talks to revise the 24-year-old Nafta agreement, and are going for a crucial round in Montreal later this month. The Ram HD is largely sold in the USA, so it never really benefited from any free trade agreement but for NAFTA.
Pickup sales have been mushrooming over the last few years, as has demand for SUVs and crossovers.
Most recently, the company announced investments totaling $3.5 billion, with the addition of 3,700 new jobs, to strengthen its U.S. manufacturing base, and align United States capacity to extend the Jeep and Ram product lines.
FCA's announcement gave the automaker an early leg up on attention from the Detroit auto show.