The move also protects Fiat-Chrysler from tariffs if the USA exits the North American Free Trade Agreement, something some negotiators and experts say looks increasingly likely. "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 USA business environment by investing in our industrial footprint accordingly", said Marchionne in a press release.
Fiat Chrysler said on Thursday it would invest over $1 billion in its MI plant and add 2,500 jobs.
Talks between the US and Mexico bogged down in late November after Mexico proposed to limit USA companies' ability to bid on government contracts.
Fiat Chrysler Automobiles has a good feeling about the recent tax reform. Jefferies Group analyst P. Houchois now expects that the company will post earnings of $2.60 per share for the year, up from their previous forecast of $2.31. About 90 percent of the Ram heavy-duty pickups made at Fiat Chrysler's Saltillo plant in Mexico are sold in the United States or Canada, company officials said. Cetera Investment Advisers now owns 14,074 shares of the company's stock valued at $148,000 after acquiring an additional 1,840 shares in the last quarter.
The changeover is to be complete in 2020.
Carillion warning spurs pensions crisis talks
The company is thought to require at least £210m in short-term funding to continue operating and implement a turnaround plan. Such a plan would leave its pension scheme, or the Pension Protection Fund, as a big shareholder.
In an announcement January 11, the automaker said the investment will solidify the U.S. "This is an wonderful statement".
Macomb County Executive Mark Hackel called the latest invesment a great announcement, saying "we're extremely grateful for FCA and Sergio making that commitment".
The Warren Truck Assembly Plant now builds the Ram 1500 and it has done so for decades, but half-ton Ram truck production is being shifted over to the Sterling Heights Assembly Plant. "(Marchionne) has a big hug coming from me at the auto show next week".
The new plant in Huntsville - already a hub for the region's budding aerospace industry - is to produce 300,000 vehicles per year, a combination of the Toyota Corolla compact auto and a new small crossover SUV from Mazda.
The company also noted that it has invested some $10 billion in its USA manufacturing operations since June 2009, with some $3.5 billion alone focused on Jeep and Ram Truck production realignment that included the addition of 3,700 new jobs. FCA didn't immediately announce what Warren Truck would do between production of the Ram 1500 leaving and Ram heavy duty arriving, although plants often shut down for a time to retool for new production projects.