Fiat Chrysler to move truck production from Mexico to US

Last Updated: Sat, Jan 13, 2018 18:16 hrs
FILE PHOTO: A Fiat logo is seen at a car dealership in Vienna

Chicago: Fiat Chrysler (FCA) will invest more than $1 billion dollars in a Michigan truck plant and relocate its production of heavy duty pickups from Mexico to Michigan in 2020.

In a statement, the Italian-American auto maker confirmed the investment is aimed at modernising the Warren Truck Assembly Plant in the US State of Michigan.

The company will produce there the next-generation Ram Heavy Duty truck, which is to relocate from its current production location in Saltillo, Mexico, in 2020, Xinhua reported.

The FCA's decision was made in wake of President Donald Trump's threat to withdraw from the North American Free Trade Agreement (NAFTA) or overhaul the deal. The passage of US tax reform legislation in 2017 has also prompted the action.

Trump hailed the decision of FCA, tweeting on Thursday night, "Chrysler is moving a massive plant from Mexico to Michigan, reversing a years long opposite trend. Thank you Chrysler, a very wise decision."

The Michigan plant will add 2,500 new US jobs to support production of heavy-duty truck, said FCA.

The company also confirmed that it will make a special bonus payment of 2,000 US dollars to some 60,000 FCA hourly and salaried employees in the US, excluding senior leadership, in the second quarter of this year.




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