Currently, the Ram is built in Saltillo, Mexico. This company shares tumbled -34.1% from their most recent record high of $26.25 and now hold $1.87 billion in market value of equity.
Fiat Chrysler CEO Sergio Marchionne a year ago raised the possibility that the automaker would move production of its durable pickups to the United States, stating USA tax and trade policy would affect the decision.
The recall affects 2017 model year Pacifica minivans, including 153,859 vehicles sold in the USA, the company said. FCA pledged to invest more than $5.3 billion in plants across America to guarantee more union jobs as part of the agreement. Chrysler is coming back to the US, from Mexico and many others will follow. But the Saltillo plant isn't going anywhere; it's being repurposed to produce other types of vehicles.
"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 USA business environment by investing in our industrial footprint accordingly", CEO Sergio Marchionne said, according to CNN Money.
Vice President Mike Pence, in a tweet, hailed the decision.
The investment is a continuation of a plan already announced by the automaker, which shuffled SUV and crossover production between Ohio, Michigan, and Mexico plants. Zacks Investment Research downgraded Fiat Chrysler Automobiles from a "buy" rating to a "hold" rating in a report on Thursday, October 26th.
According to a news release, the investment will go toward modernizing the plant at Mound and Nine Mile roads in south Warren to produce the Ram Heavy Duty pickup truck, which is relocating from Mexico to MI in 2020.
But economic analysts note that the 2,500 jobs Fiat Chrysler plans to create at the Warren Truck Plant lags the auto manufacturing jobs lost in 2017. The payment will be made in the second quarter and is being paid in addition to profit-sharing or performance bonus payments. The company is set to launch a new 1500 series pickup at the North American International Auto Show next week; heavy duty trucks usually follow soon after.
This is big business news for MI, although Fiat Chrysler isn't actually moving a plant here like the President just wrote, instead its moving production of its Ram trucks from Mexico to Warren.
Friday I reported that stock funds brought in $24-B in the 1st week of Y 2018, marking the 6th-biggest inflow ever and the most in at 6 months. They support production in the Jeep and Ram lines, and will also help bring three new Jeep models to plants in OH and MI.
Modernizing the MI plant will cost the company $1 billion.
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