FCA announces $1B U.S. investment, $2,000 employee bonusesby Drew Johnson
FCA credits the recent tax reform law for its new investments.
Fiat Chrysler Automobiles has announced a $1 billion investment in its Warren Truck Assembly Plant that will see the company's Ram truck division move its heavy duty truck production from Mexico to the United States.
Ram currently builds its heavy duty truck models in Saltillo, Mexico, but that production will shift to the Warren plant in 2020. FCA will also use part of the $1 billion investment to ready the Warren plant for the production of the upcoming Jeep Wagoneer and Grand Wagoneer models. The investment is expected to create about 2,500 new jobs.
FCA's Saltillo facility, meanwhile, will be repurposed to produce commercial vehicle for global distribution.
Additionally, FCA announced that it is making a special bonus payment to 60,000 of its hourly and salaried employees. FCA says both moves were made possible by the recent passage of the U.S. tax reform bill.
"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.”
FCA has invested $10 billion in the U.S. since 2009.