Fiat Chrysler is moving production of heavy-duty trucks from Mexico to Michigan. In response to the Republican tax reform, Chrysler is also bonuses to 60,000 U.S. workers. FCA CEO Sergio Marchionne said in a statement that Chrysler’s workers should share in the lower corporate tax rate provided by the tax reform.
In two tweets, President Donald Trump applauded Chrysler’s "very wise decision" to move production of Ram Heavy Duty trucks from Mexico to the Detroit metropolitan area. Trump wrote, “Chrysler is moving a massive plant from Mexico to Michigan, reversing a years long opposite trend. Thank you Chrysler, a very wise decision. The voters in Michigan are very happy they voted for Trump/Pence. Plenty of more to follow!”
On Thursday evening, Chrysler announced an investment of $1 billion to modernize the its Warren Truck Plant, adding 2,500 jobs.
In another tweet, President Trump heralded Chrysler’s investment. “More great news as a result of historical Tax Cuts and Reform: Fiat Chrysler announces plan to invest more than $1 BILLION in Michigan plant, relocating their heavy-truck production from Mexico to Michigan, adding 2,500 new jobs and paying $2,000 bonus to U.S. employees!”
Chrysler may have made the move partly in response to fears that the president may still carry out threats to end the North American Free Trade Agreement.
Chrysler currently produces its Ram heavy duty trucks in Saltillo, a city in Durango State in central Mexico. FCA CEO Marchionne said in a statement that the company is adjusting its operations to reflect “improvement in the U.S. business environment.”
Martin Barillas is a former US diplomat and the editor of Spero News.