Fiat Chrysler's New US Jobs Could Help It Avoid Big Fees

Fiat Chrysler's New US Jobs Could Help It Avoid Big Fees

(Reuters) - Fiat Chrysler Automobiles NV said on Thursday it would invest more than $1 billion in its MI plant and add 2,500 jobs as it benefits from the overhaul of the USA tax code.

Italian-American automaker Fiat Chrysler on Thursday unveiled a plan to invest $1 billion in a MI assembly plant and offer bonuses to tens of thousands of employees, saying the measures were possible because of U.S. tax reform. Separately, the Euro-American automaker announced plans to pay $2,000 bonuses to 60,000 USA hourly and salaried employees this coming spring.

President Donald Trump tours the American Center of Mobility, Wednesday, March 15, 2017, in Ypsilanti Township.

The decision to put the Ram HD pickup in Warren is the latest in a series of moves by Fiat Chrysler to enhance its truck production while cutting back on passenger vehicle output. The payment, which recognizes employees for their continued commitment to the company's success, will be made in the second quarter of this year, and will be in addition to any profit sharing and salaried performance bonuses that employees would otherwise be eligible to receive in 2018.

"Eisenstein is publisher of the Detroit Bureau says while FCA credits the new tax plan for the investment, this was actually in the making for quite some time and it just made sense".


60,000 of FCA will also be receiving a one-time $2,000 bonus. The automaker has retooled the nearby Sterling Heights Assembly Plant to handle the all-new 2019 Ram 1500 light-duty version of its full-size pickup. Like Thursday's announcement, the action is expected to be completed by 2020.

The automaker said that the investment it announced on Thursday is separate from a labor deal of 2015 with the UAW union. Detroit's Big Three have invested billions in MI and Macomb County in the last few years, and that's a statement to the strength of the region, he said. "This is an awesome statement".

Warren Truck Assembly Plant on Mound Road, north of 8 Mile Road, has been making trucks since 1938. "(Marchionne) has a big hug coming from me at the auto show next week". The new investments, totaling $3.5 billion, will add 3,700 new jobs and involve production shifts at plants in Michigan, Illinois and Ohio. Sources have cited that since the past few years, the firm has been trying to restructure its vehicle manufacturing operations across the U.S.to create more jeeps and trucks, driven by excessive consumer demand.

Alabama's total incentive package to Toyota and Mazda is to top US$700 million after local incentives are added to what the state offered to land the companies' new U.S. factory.

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