Photo Credit: Tino Rossini/Flickr/CC BY 2.0
Fiat Chrysler Automobiles (FCA) made an exciting announcement this week: due to the new tax reform law, FCA will be relocating production of its Ram heavy-duty truck from Mexico to its plant in Warren, Michigan. FCA will also be making a $1 billion investment to upgrade its Michigan facility, and add 2,500 new jobs to support the move:
Fiat Chrysler Automobiles is feeling good about tax reform. So good that it says it’s moving some of its truck production from Mexico to Michigan.
The automaker announced Thursday that it will spend more than $1 billion to revamp its Warren Truck Assembly Plant, which will start making the Ram heavy-duty truck in 2020. The truck is currently made in Saltillo, Mexico.
Fiat Chrysler said it will add 2,500 jobs in Michigan to support the move.
In addition, FCA announced it is giving $2,000 bonuses – due to tax reform – to over 60,000 U.S. workers.
“It is only proper that our employees share in the savings generated by tax reform and that we openly acknowledge the resulting improvement in the U.S. business environment by investing in our industrial footprint accordingly,” CEO Sergio Marchionne said in a press release.
FCA’s news comes just a day after Walmart’s announcement that it will increase its minimum wage and expand benefits and Waste Management’s decision to give $2,000 bonuses to 36,000 employees, all due to the tax reform law. A Wall Street Journal survey of economists this week concluded that tax reform, along with other pro-growth policies, has directly benefited the U.S. economy.
Manufacturers are heading into 2018 with record-high optimism, but there is still more policymakers can do to sustain economic growth. A big investment in our nation’s infrastructure, workforce solutions, trade expansion and additional regulatory reforms will be keys to unlocking an even more successful 2018.
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