Fiat Chrysler Automobiles (FCA) says it will move jobs from Mexico to Michigan. FCA announced that it will make 2,000 jobs in Michigan. It will also invest $1 billion in two Michigan factories. Along with new jobs, FCA says that there’s a possibility it will move its Ram Heavy Duty pickup truck production from its Mexican plant to Michigan.
President-elect Donald Trump threatened Ford, GM, and Toyota with imported vehicle tax. He also criticized the automaker’s decisions to move production of some of their vehicles to Mexico. This could be one reason FCA is hesitant to invest in any production in Mexico.
FCA Chief Executive, Sergio Marchionne, said that these plans were already “in the works and has been in the works for a long period of time.”
Many automakers have made the North American International Auto show a way to vendor their investments in the United States. Daimler, for example, announced that they would be investing $1.3 billion in a sports utility vehicle.
With Trump’s inauguration coming up, a majority of automakers are looking forward to the changes the new president will make. Especially when it comes to environmental regulations and tax cuts. Trump did announce that he would raise imported tax of vehicles made in Mexico unless automakers brought more business to Americans.
This has a negative effect on the Mexican economy who also depends on the production of U.S. cars in Mexico. Fiat’s Marchionne said that “the Mexican automotive industry has now for a number of years been tooled-up to try and deal with the U.S. market. If the U.S. market were not to be there, the reasons for its existence are on the line.”
Since Trump’s announcement of “big border tax” many companies are quick to invest in the United States. Ford recently tanked its $1.6 billion deal to build a factory in Mexico. Instead, Ford plans to invest $700 million in Michigan plants. Ford said they would still move Focus production to Mexico. the automaker would combine the Focus assembly with another existing Mexico plant.
Fiat Chrysler says a Warren factory near Detroit would make the Jeep Wagoneer and Jeep Grand Wagoneer SUV. FCA also says that its Toledo, Ohio factory would make the Jeep pickup.
A source close to the FCA’s verdict says that the company’s decision was not based on Trumps recent criticism and tax threats. The company also said that it didn’t meet with Trump before the finalization of the deal.
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