Fiat-Chrysler just announced on Sunday via FCA that it will invest a billion dollars in 2 new factories in Ohio and Michigan, thus creating approximately 2000 new jobs in the United States.
The announcement from Fiat-Chrysler came soon after Ford Motor Company scrapped their plan to build a new plant in Mexico, in the aftermath of Donald Trump announcing that he will impose a border tax on companies offshoring jobs. However, FCA said that this was actually the second phase of an older plan, which was first made public in 2016.
Even Ford’s CEO now claims that the main factor for keeping their factory in the US ( Mexico just lost a 1.6 billion dollars investment) is market demand, not The Donald. It’s interesting to notice that before Donald Trump became POTUS, these kind of things never happened, the trend was always the other way around, i.e. to offshore jobs/factories, not to keep them at home.
One may wonder how much is market demand, how much is the art of the deal and how much is the power of the Donald slamming companies who are planning to move US jobs in foreign countries via border taxes.
FCA said in a statement, let me quote:
Consistent and combined with previously announced investments, FCA US is further demonstrating its commitment to strengthening its U.S. manufacturing base, and aligning U.S. capacity to extend the Jeep product lineup.
Also, the joint venture between FIAT and Chrysler will upgrade and modernize its Warren Truck Assembly Plant in order to build the a new Jeep model together with Grand Wagoneers, while their factory in Toledo will build a new Jeep pickup truck.
All these plans will be put into practice in the next 4 to 5 years said the FCA, adding that they’re trying assiduously to increase their US production capacity for SUVs and trucks, in order to meet market demand.
FIAT will continue, at least for the time being, to build the RAM heavy duty truck in Mexico while trying to solidify the United States as the company’s global manufacturing hub for Fiat-Chrysler’s flagship brands.
However, according to FCA:
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