Fiat Chrysler to Invest $1 Billion in Michigan Plant and Add 2,500 Workers

The automaker says its 60,000 hourly and salaried U.S. employees will get $2,000 bonuses in the second quarter of 2018.

Fiat Chrysler plans to move production of Ram heavy duty pickup trucks to Michigan from Mexico in 2020, adding 2,500 U.S. jobs, the automaker said.

FCA will invest $1 billion in its truck assembly plant in Warren, Michigan, not far from Detroit.

In addition, the carmaker said its 60,000 hourly and salaried U.S. employees would receive $2,000 bonuses in the second-quarter of this year. 

“These announcements reflect our ongoing commitment to our U.S. manufacturing footprint and the dedicated employees who have contributed to FCA’s success,” Sergio Marchionne, FCA’s chief executive officer, said in a news release. “It is only proper that our employees share in the savings generated by tax reform and that we openly acknowledge the resulting improvement in the U.S. business environment by investing in our industrial footprint accordingly.”

The move by FCA would reduce the automaker’s exposure should the United States pull out of the North American Free Trade Agreement, noted Reuters

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 currently sold in the U.S. or Canada, Reuters


The late Thursday FCA announcement came a day after Toyota and Mazda said they’d join forces in building a $1.6 billion auto factory in Alabama.

It’s anticipated that FCA will announce a new Ram 1500 pickup truck on Monday at the Detroit Auto Show.