Fiat Chrysler to expend $1 Billion to overhaul MI plant

Share

Should the U.S. depart NAFTA, it might result in a 25 percent duty on vehicles made in Mexico and transported to the U.S. An overwhelming majority of Ram heavy-duty pickups assembled at FCA's Saltillo plant in Mexico are now sold in the U.S. or Canada, Reuters reported.

The roughly $120 million payout to employees will be in addition to profit-sharing checks that United Auto Workers members receive as part of their contracts.

Chief executive, Sergio Marchionne, said in a statement that the declarations demonstrate our continuing devotion to our United States assembling footprint and the devoted employees who have provided to the FCA's success.

Despite the shifting of Ram Heavy Duty production from Mexico, the Saltillo Truck Assembly Plant there will continue to operate.

It is proper that the company's employees are able to share in the tax reform savings and that we acknowledge openly and the improvement in the business environment in the U.S.by investing accordingly in our industrial footprint, said the automaker's CEO Sergio Marchionne through a press release. The Mexican plant will be "repurposed to produce future commercial vehicles" for sale worldwide markets.

Fiat Chrysler Automobiles N.V. (NYSE:FCAU) is anticipated to report earnings of 17.00% per share for next year, according to analysts.

The company also noted that it has invested some $10 billion in its USA manufacturing operations since June 2009, with some $3.5 billion alone focused on Jeep and Ram Truck production realignment that included the addition of 3,700 new jobs.

$350 million in the Belvidere Assembly Plant (IL) to produce the Jeep Cherokee, which moved from Toledo, Ohio, in 2017.

The company said it has invested $10 billion in its US manufacturing operations since June 2009.

The company's stock is now moving with a +ve distance from the 200 day SMA of approximately 64.98%, and has a solid year to date (YTD) performance of 31.28% which means that the stock is constantly adding to its value from the previous fiscal year end price.

“Now we are talking multiple billions of dollars in the Sterling Heights Assembly Plant, ” he said.

"While the news is positive, the UAW is reviewing the details", Rothenberg said, noting union officials would likely have more to say later.

ITALIAN-AMERICAN automaker Fiat Chrysler yesterday unveiled a plan to invest US$1 billion (RM4 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. More than 2,000 new jobs will be added at these two plants to support production, FCA pointed out. The latest round of negotiations starts January 23 and will be held in Montreal.

Share