Fiat Chrysler Automobiles (FCA) stated it will invest $1 billion to improve two plants in the United States Midwest and generate 2,000 jobs, and possibly move production of a Ram heavy-duty truck to Michigan from Mexico.
FCA CEO Sergio Marchionne stated on Monday the choice to retool factories in Ohio and Michigan to construct new Jeep sport utility vehicles, consisting of a pickup truck, “was in the works and has been in the works for an extended period of time.”
However he likewise told press reporters at the Detroit auto show that unpredictability over U.S. President-elect Donald Trump’s trade and tax policies could lead automakers to postpone investments in Mexico.
“The reality is the Mexican vehicle market has now for a number of years been tooled-up to try and deal with the United States market. If the United States market were not to be there, the factors for its existence are on the line,” Marchionne stated.
Trump has notified to put new taxes on imported automobiles and targeted car companies including Ford Motor, General Motors and Toyota Motor for building automobiles in Mexico.
FCA’s investment decisions were not associated with Trump’s recent comments on the automobile industry, as per individuals knowledgeable about the company’s actions. FCA had formerly stated it would broaden truck and SUV production in the United States, though the $1 billion financial investment figure and creation of 2,000 tasks are recent.
A person acquainted with the situation informed that Marchionne wished to go out those details in case FCA has been targeted by Trump. The person informed FCA executives did not confer with Trump before deciding.
FCA’s statement also highlighted the vehicle market’s eager interest in getting remedy for difficult fuel economy rules enacted under the outgoing Obama administration.
