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Fiat Chrysler Moving Production of Ram Trucks to MI

Fiat Chrysler Moving Production of Ram Trucks to MI

FCA said that the move will create 2,500 new jobs at the plant, on top of 2,000 new jobs the company announced in January a year ago as it tools up to build more pickups and sport utility vehicles in US plants.

Fiat Chrysler CEO Sergio Marchionne a year ago raised the possibility that the automaker would move production of its durable pickups to the United States, stating USA tax and trade policy would affect the decision. In addition, FCA said it will give special bonus payments of $2,000 to approximately 60,000 f its hourly and salaried employees.

The plant changeover will be done by 2020. The new law, which cuts the corporate tax rate to 21%, eliminates loopholes, and doubles the standard deduction for individuals and families, was supported by Rep. Adam Kinzinger (R-IL 16) but opposed by Rep. Cheri Bustos (D-IL 17), and Sen.

The bonuses will be reimbursed in the second quarter of 2018 in inclusion to any payback apportion or achievement associated bonuses. Currently FCA produces Ram Heavy Duty at one of its plants Saltillo, Mexico. It provides passenger cars, light trucks, and light commercial vehicles under the Abarth, Alfa Romeo, Chrysler, Dodge, Fiat, Fiat Professional, Jeep, Lancia, and Ram brand names; and luxury vehicles under the Maserati brand, as well as related service parts and accessories, and service contracts under the Mopar brand.

It's anticipated that FCA will announce a new Ram 1500 pickup truck on Monday at the Detroit Auto Show.

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CEO Sergio Marchionne said in a statement that the announcements reflect the company's ongoing commitment to manufacturing in the US. Since 2011, the Company has invested more than $5.7 billion in its US facilities and hired almost 15,000 hourly employees by keeping labor costs competitive.

"While the news is positive, the UAW is reviewing the details", Rothenberg said, noting union officials would likely have more to say later.

Moving Ram Heavy Duty production to MI mitigates somewhat the risk of auto industry-unfavorable changes that President Trump has pushed for in the North American Free Trade Agreement (NAFTA). The passage of US tax reform legislation late past year has also prompted the action.

The move by FCA would reduce the automaker's exposure should the United States pull out of the North American Free Trade Agreement, noted Reuters.

On Wednesday, Toyota Motor and Mazda Motor announced they would construct a new $1.6 billion joint venture auto assembly plant in Alabama, drawing praise from Donald Trump.