FCA moves Ram from Mexico to U.S.

UPDATED: 1/11/18 10:09 pm ET – adds details

FCA will invest more than $1 billion to modernize a Michigan truck plant to produce the next-generation Ram Heavy Duty pickup, which will be shifted from Saltillo, Mexico, starting in 2020.

The investment at the Warren, Mich.., assembly plant follows plans detailed in January 2017 to expand the factory to build all-new Jeep Wagoneer and Grand Wagoneer SUVs.

The company said the Saltillo truck assembly plant will be repurposed to produce future commercial vehicles for global markets. 

FCA said 2,500 new jobs will be created at the Michigan plant, in addition to the jobs detailed in January 2017 when FCA said it would move light-duty Ram truck output from the Warren, Mich., site to a nearby Sterling Heights, Mich., factory.

The company also plans to make a special bonus payment of $2,000 to approximately 60,000 FCA hourly and salaried employees in the U.S., excluding senior leadership.

FCA said Thursday the Michigan plant expansion and special payments were made possible in part by U.S. tax reform passed late last year that will reduce the company’s corporate tax bill.

FCA Chief Executive Sergio Marchionne said a year ago the company could shift heavy-truck output from Mexico to Michigan, depending on the outcome of tax reform legislation and proposed changes to the North American Free Trade Agreement.

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Article source: http://www.autonews.com/article/20180111/OEM/180119921/fca-trucks-michigan-mexico-bonus