FCA to Invest $1 Billion in Michigan Plant

FCA is making a new investment in its U.S. manufacturing operations as well as rewarding employees with a special bonus. Both moves were made possible by Congress passing the new tax reform bill, according to the company.

FCA’s newly announced $1 billion investment will modernize the Warren Truck Assembly Plant in 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 for the new Jeep Wagoneer and Grand Wagoneer.

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, according to the company.

Second, FCA confirmed that 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.

“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.”