Fiat Chrysler will be investing $1 billion for an assembly plant to produce Ram Heavy Duty Trucks beginning in 2020, the company announced Thursday.
FCA will shift production of trucks from its current plant in Mexico back to a plant near Detroit and will also divvy up bonuses to the company’s American workers, in light of the recent tax reform law, The Sun Herald reports.
The new plant will add an additional 2,500 new jobs to the state economy. If President Donald Trump holds to his campaign promise to withdraw the United States from The North American Free Trade Agreement (NAFTA), it could trigger a 25 percent fee on pickup trucks made in Mexico and shipped to America, Reuters reports.
Fiat Chrysler (FCAU) had already been planning to bolster production at the Warren plant. In January 2017, the company said it would spend $1 billion to expand factories in Ohio and Michigan, creating 2,000 jobs total. Some of that money was earmarked for Warren, where FCA said it plans to start making the Jeep Wagoneer and Grand Wagoneer by 2020.
Chief executive, Sergio Marchionne, said in a statement that the declarations demonstrate our continuing devotion to our USA assembling footprint and the devoted employees who have provided to the FCA’s success. The automaker has retooled the nearby Sterling Heights Assembly Plant to handle the all-new 2019 Ram 1500 light-duty version of its full-size pickup. The Mexican plant will be “repurposed to produce future commercial vehicles” for sale global markets.
Trump is also seeking to revamp the North American Free Trade Agreement (Nafta) with Canada and Mexico, and has encouraged United States businesses to bring jobs back home from across the southern border.