Fiat Chrysler to invest over $1 billion in Ram Truck plant

FCA also plans to use some of the tax savings to give a $2,000 bonus to its roughly 60,000 employees as a monetary thank you.

A Chrysler Warren Truck Assembly sign is seen in front of the Fiat Chrysler Automobiles (FCA) plant in Warren, Michigan October 7, 2015.

The investment follows a dramatic jump in Fiat Chrysler stock amid optimism about its product lineup being revamped with fresh trucks and sport utility vehicles.

The company will upgrade the Warren Truck Assembly Plant in MI to produce heavy-duty Ram trucks and add jobs there to support the increased volume.

The investment announced on Thursday is additional, the company said.

Fiat/Chrysler says the tax plan will also mean the return of manufacturing jobs to the US from Mexico.

The Italian-American automaker will pay each US hourly and salaried employee a $2,000 bonus in the second quarter of 2018. More than 2,000 new jobs will be added at these two plants to support production.

"These announcements reflect our ongoing commitment to our USA manufacturing footprint and the dedicated employees who have contributed to FCA's success", CEO Sergio Marchionne says in a statement.

FCA announced today two actions made possible in part by the passage of US tax reform legislation late a year ago - an additional investment in its USA manufacturing operations and a special payment to recognize employees for their continued efforts toward the success of the Company.

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

Fiat CEO Sergio Marchionne said news of the investment shows how committed the company is to investing in the United States, in a statement cited by CNBC report.

Miguel Ceballos, FCA spokesman for Mexico, said the company in 2018 and 2019 expects more growth in Mexico, and the moment it stops producing the Ram Heavy Duty pickups it will start to produce the new commercial vehicle, "which still does not have a name", Ceballos said.



Other news