Fiat Chrysler to invest $1bn in Michigan production plant
Fiat Chrysler Automobiles (FCA) has announced that it will be investing $1bn into a plant in Michigan, expected to create approximately 2,500 jobs.
Once up and running in 2020, the facility will become the company’s regional epicentre for the production of its Ram heavy duty pickup trucks.
As a result, the firm’s Mexico plant, where the production of such vehicles currently occurs, will be repurposed, instead being used to develop and produce future Fiat Chrysler commercial vehicles for global sale.
The move comes following a recent tax code overhaul across the United States, with Fiat Chrysler viewing the move as a way of protecting its profits should President Donald Trump pull the US from the North American Free Trade Agreement (NAFTA) completely.
In addition, the firm also revealed that it would pay 60,000 of its US-based employees bonuses of $2,000 each, totalling $120mn in expenses.
“These announcements reflect our ongoing commitment to our U.S. manufacturing footprint and the dedicated employees who have contributed to FCA's success,” said Sergio Marchionne, Chief Executive Officer, FCA.
“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.”
Since June 2009, the company has invested over $10bn in its US manufacturing operations, adding thousands of jobs to the economy in the process.
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