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Fiat Chrysler to shift truck production unit to the U.S. from Mexico

Fiat Chrysler Automobiles N.V., a UK based automotive manufacturer, has decided to spend USD 1 billion to shift its heavy-duty truck production facility from Mexico to Michigan. As per authentic sources, nearly twenty-five hundred new jobs will be created by the firm in Michigan. The key officials of the automobile giant have stated that the firm plans to provide bonuses of nearly USD 2000 to each of its employees across the U.S., totaling to around 60,000. Apparently, the bonus amount will be rolled out in the second quarter of this year in surplus of performance-related & profit-sharing bonuses. It has been claimed that the tax bill signed into law by the U.S. president in December 2017 has made it possible for the firm to perform two tasks – firstly, offering incentives to its employees, and secondly, focusing on job creation across the region.

According to reports, the automotive major is expected to unleash its new light pickup truck, the Ram 1500, in the next few days. Sources have cited that since the past few years, the firm has been trying to restructure its vehicle manufacturing operations across the U.S. to create more jeeps and trucks, driven by excessive consumer demand. Estimates related to light weight vehicle sales state that last year, around 7 from every 10 light vehicles sold were light trucks. This has resulted in the change in priorities among the vehicle manufacturers who are now manufacturing more trucks while making a reduction in their car production, as per sources.

Reportedly, this is the second among the decisions made by an automobile giant to move its vehicle manufacturing plant to the U.S. since the last few days. Earlier on 10th January this year, Mazda and Toyota Motors declared Huntsville in the U.S. as a new plant location for their joint car production. It is anticipated that the new establishment will recruit nearly 4,000 personnel and commence its vehicle production in 2021.

Dhananjay Punekar: