FCA has announced two actions the automaker says were made possible in part by the passage of U.S. tax reform legislation late last year — an additional investment in its U.S. manufacturing operations and a special payment to recognize employees for their continued efforts toward the success of the company.
First, the company confirmed it will invest more than $1 billion to modernize the Warren Truck Assembly Plant > (Michigan) to produce the next-generation Ram Heavy Duty truck, which will relocate from its current production location in Saltillo, Mexico, in 2020. This investment is in addition to the announcement made in January 2017, which committed to spending a portion of $1 billion in Warren Truck Assembly to expand the Jeep product line with the addition of the all-new Jeep Wagoneer and Grand Wagoneer. The Saltillo Truck Assembly Plant will be repurposed to produce future commercial vehicles for global distribution.
To support the increased volume at the Warren facility, 2,500 new jobs will be created, above and beyond the jobs announced as part of the January 2017 announcement, FCA said.
The company also confirmed it will make a special bonus payment of $2,000 to approximately 60,000 FCA hourly and salaried employees in the U.S., excluding senior leadership. 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. The special bonus will be paid to all eligible employees of the FCA automotive and components operations in the U.S.
“These announcements reflect our ongoing commitment to our U.S. manufacturing footprint and the dedicated employees who have contributed to FCA’s success,” said Sergio Marchionne, CEO of FCA. “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.”
Investment in U.S. Manufacturing Grows
FCA has invested $10 billion in its U.S. manufacturing operations since June 2009. Most recently, the company announced investments totaling $3.5 billion, with the addition of 3,700 new jobs, to strengthen its U.S. manufacturing base, and align U.S. capacity to extend the Jeep and Ram product lines.
Those investments and related actions involved production shifts at three plants in Illinois, Ohio and Michigan to gain capacity for the Jeep Cherokee, Jeep Wrangler and Ram Light Duty truck, and the introduction of three new Jeep models at plants in Ohio and Michigan.
The new plant investment actions announced are subject to the negotiation and final approval of incentives by state and local entities.