Fiat Chrsyler Automobiles said Thursday it was set to invest over one billion dollars in its plant at Warren in MI, where it will move from Mexico the production of the next generation of Ram Heavy Duty pickups.
The decision means the trucks will no longer be built at the Saltillo Truck Assembly Plant in Mexico.
Beyond lower labor costs, Mexico has negotiated an array of global free trade agreements that would better fit production of a vehicle that will be sold worldwide. Canadian government officials earlier this week said they are convinced that Trump intends to announce his intention to quit the agreement.
Trump has threatened to force the rollback of NAFTA, which makes it possible for the free flow of products made in the United States, Canada and Mexico throughout the borders of those nations. FCA said it would add 2500 jobs as a result.
Oddo Bhf set a €13.00 ($15.48) price objective on Fiat Chrysler Automobiles (BIT:F) in a report issued on Friday, January 5th. Early a year ago, the company announced that they would invest a billion in the Toledo South plant for the new Jeep pickup and Warren Truck for the new Wagoneer. "Proof that this admin's AMERICA FIRST policies are WORKING!"
Fiat Chrysler FCHA.MI (FCA) shares hit a record high on Monday on growing expectations that the carmaker's coveted Jeep brand will unlock even greater value this year.
That $3.5 billion investment and related actions involved production shifts at three plants in Illinois, Ohio and MI to gain capacity for the Jeep Cherokee, Jeep Wrangler and Ram Light Duty truck, as well as the introduction of three new Jeep models at plants in Ohio and MI.
$1.5 billion in the Sterling Heights Assembly Plant in MI to build the next generation Ram 1500 truck. Fiat Chrysler announced it will hire 2,500 people to facilitate the move and said it will give a one-time $2,000 bonus to its 60,000 USA workers.
According to an FCA press release, the automaker has invested $10 billion in US manufacturing operations since June 2009.