Fiat invests $1 billion

Date: 11 JAN 2017posted by Car Rentaledited by WinX

Fiat Chrysler Automobiles announced on Sunday that they are planning to invest $1 billion to modernize two current existing plants and create almost 2000 jobs in the United States. One of these plants would be able to produce the Ram heavy duty pickup truck currently being manufactured in Mexico In the statement, the company declared they plan to produce a new Jeep and Grand Wagoneers at the Warren Truck Assembly Plant in Michigan while they would produce a new pick up truck at their facility in Toledo, Ohio. These plans will be in place by 2020. The announcement comes in what the company said is the second phase of a plan arranged and made public a year ago, coincidentally it came days after Ford had scraped their plans to invest in a new plant in Mexico and opted to reinvest in pre-existing factories in the United States.

"Consistent and combined with previously announced investments, FCA US is further demonstrating its commitment to strengthening its U.S. manufacturing base, and aligning U.S. capacity to extend the Jeep product lineup," in a statement made by the company. However, the company did also indicate they would still continue to produce at least one line, its Ram heavy duty truck, in Mexico. President-elect Donald Trump had tweeted praise for the company on Monday for their plans to invest in the United States, even though the automaker announced at a later time that the decision was "coincidental." Donald Trump has been criticizing a list of manufacturing companies that produce in Mexico and export back to the United States. He has consistently been threatening these companies on tweeter with "big taxes" on goods imported from Mexico. Many of these companies have caved into his demand although some may not admit to it.

In a separate incident, during the 2017 North American International Auto Show on Monday, Fiat Chrysler CEO Sergio Marchionne made comments regarding Donald Trump's tariffs. "It's a combination of tariffs and costs. If we just can't recover the costs of the vehicle that would be lethal, I think, to Windsor." Earlier, the Windsor-made Chrysler Pacifica had been named the utility vehicle of the year. He also made comments that Canada has not been in any of Donald Trump's tweeter trade disputes, or at least to his knowledge, and that the president-elect has been more focused on their southern neighbor, Mexico as he sees them "more problematic." Mexico currently accounts for 20% of all vehicle production in North America and has attracted over $24 billion in investments for auto manufacturing since 2010.

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