Fiat to Invest $1 Billion in Michigan, Ohio Plants; Create 2,000 Jobs
FCA, the U.S. arm of automaker Fiat-Chrysler, announced on Sunday that it would invest a total $1 billion in plants in Michigan and Ohio, which will add 2,000 new jobs in the United States.
The announcement, in what the company said was the second phase of a plan it first made public a year ago, came days after Ford decided to scrap a plan to build a facility in Mexico, instead opting to invest in a plant in Michigan. Ford's CEO cited demand, rather than the policies of President-elect Donald Trump, who has vowed to impose a "border tax" on companies that send jobs abroad.
"Consistent and combined with previously announced investments, FCA U.S. is further demonstrating its commitment to strengthening its U.S. manufacturing base, and aligning U.S. capacity to extend the Jeep product lineup," FCA said.
The President-elect was quick to take credit, however, tweeting his thanks on Monday morning.
In a statement, FCA said it would retool and modernize its Warren Truck Assembly Plant to produce a new Jeep and Grand Wagoneers, while a facility in Toledo would build a new Jeep pickup truck. These plans will be in place by 2020, the company said.
The move "is a continuation of the efforts already underway to increase production capacity in the U.S.on trucks and SUVs to match demand," the company said, adding that it would help solidify the U.S. as "a global manufacturing hub" for its flagship brands.
However, Fiat indicated it would still continue to produce at least one line, its Ram heavy duty truck, in Mexico.
"The added benefit of the investment in Warren is that it will enable the plant to produce the Ram heavy duty truck, which is currently produced in Mexico," FCA said.
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In the late 70s my husband worked for Chrysler at their Lynch Road Assembly plant in Detroit. It was decided that they would rebuild the plant. Shut it down for a whole summer, paying the workers the equivalent of 95% of their gross pay between unemployment and the "trade readjustment act" (at that time neither of those benefits were taxed). Plant reopened to a bunch of fanfare...then shut the damn place down less than a year later! 50 million dollars for nothing! They offered him a buy-out or a transfer to Delaware...he took the buy-out.
Understandably. Michigan certainly has seen some rough times over the past 50 or so years. I'm glad that we are seeing these companies bringing jobs back and hopefully they will keep them here. The Management seems to understand that consumers don't want junk and they are producing much better vehicles nowadays. Now, it's time for Management, Unions and workers to all come together and figure out what is reasonable to pay employees.
Sounds like you had an unwanted roller coaster ride.
At least now auto workers in Michigan don't have to join the UAW.