Should the U.S. depart NAFTA, it might result in a 25 percent duty on vehicles made in Mexico and transported to the U.S. An overwhelming majority of Ram heavy-duty pickups assembled at FCA's Saltillo plant in Mexico are now sold in the U.S. or Canada, Reuters reported.
Fiat Chrysler Chief Executive Sergio Marchionne a year ago raised the possibility that the automaker would move production of its heavy-duty pickups to the United States, saying US tax and trade policy would influence the decision.
Fiat Chrysler also announced it would give a $2,000 bonus to around 60,000 employees.
The changeover is to be complete in 2020. President Trump showered praises on Twitter saying, "More great news as a result of historical Tax Cuts and Reform". As per authentic sources, almost twenty-five hundred new jobs will be created by the firm in MI. The payment will be made in the second quarter and is being paid in addition to profit-sharing or performance bonus payments. About 90 percent of the Ram heavy-duty pickups made at Fiat Chrysler's Saltillo plant in Mexico are sold in the United States or Canada, business authorities stated. That plant previously produced the Chrysler 200 sedan which has been dropped from the line-up.
Fiat Chrysler divulged his plans to overhaul the plant in Warren, Mich., on the run up to the North American International Auto Show in Detroit, which opens to the media and industry visitors on Sunday.
FCA CEO Sergio Marchionne says the company should adjust its manufacturing footprint to reflect "improvement in the US business environment". 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. FCA didn't immediately announce what Warren Truck would do between production of the Ram 1500 leaving and Ram heavy duty arriving, although plants often shut down for a time to retool for new production projects. He also has criticized automakers for moving jobs and investment in new manufacturing facilities to Mexico and prodded them to add more auto production in the United States.
"This has become somewhat of a Ram country here in Macomb County if you think about it because this is where it's being built. and they're bringing them up from Mexico", Hackel said. More than 700 new jobs will be added to support production.
"We're moving along nicely", President Donald Trump said in an interview. The passage of US tax reform legislation late a year ago has also prompted the action.