Fiat Chrysler Automobiles (FCA) has announced plans to shift the production of Ram heavy-duty pickup trucks from Mexico to Michigan in 2020, a move that will create 2,500 jobs in the United States.
The automaker intends to invest $1 billion in its assembly plant located in Warren, Michigan, which is situated near Detroit.
Alongside this production shift, FCA has also declared that its 60,000 hourly and salaried employees in the U.S. will receive bonuses of $2,000 in the second quarter of this year.
“These announcements underscore our steadfast commitment to U.S. manufacturing and the hard-working employees who have been integral to FCA’s success,” said Sergio Marchionne, CEO of FCA, in a news release. “It is only fitting that our employees benefit from the savings generated by tax reform, and we ought to acknowledge the improved business climate in the U.S. by reinvesting in our operations here.”
According to Reuters, this decision by FCA may lessen the company’s exposure in the event that the United States withdraws from the North American Free Trade Agreement (NAFTA).
If the U.S. exits NAFTA, it could lead to a 25 percent tariff on vehicles manufactured in Mexico and imported into the U.S. Currently, a significant portion of the Ram heavy-duty pickups produced at FCA’s Saltillo facility in Mexico are sold in the U.S. or Canada.
FCA’s announcement, made late Thursday, follows a day after Toyota and Mazda revealed their plans to collaborate on a $1.6 billion automotive factory in Alabama.
It is also expected that FCA will unveil a new Ram 1500 pickup truck on Monday during the Detroit Auto Show..
