HDs to be built alongside Jeep Wagoneer family in 2020
FCA is moving production of the next-generation Ram heavy-duty pickup truck in 2020 from Mexico to its Warren Truck Assembly Plant in Michigan where it will be built alongside the new Jeep Wagoneer and Grand Wagoneer.
The move is possible because FCA made the prior decision to make the new big Jeep SUVs on the Ram body-on-frame platform. That was a change from original plans to stretch the Jeep Grand Cherokee platform for the high-end Wagoneers.
FCA’s initial investment in Warren for the Wagoneers was announced in January 2017. At that time, FCA said it would spend $1 billion across two plants: Warren and Toledo where retooling is needed to make a new Jeep Wrangler pickup. At that time, officials noted that the Warren investment would make it easier to move Ram production to Michigan in the future if necessary but said no such decision had been made.
Today FCA announces an additional $1 billion investment with the decision to follow through and make the move a reality. The automaker will modernize the Warren plant and prepare it for Ram HD production. In the process, it will add 2,500 jobs. The automaker credits U.S. tax reform legislation for helping make the additional investment possible.
The move also is in keeping with political fears about sourcing outside the U.S. The current Ram heavy duties are built at the Saltillo Truck Assembly Plant in Mexico. That plant will be retooled to make future commercial vehicles for global export which takes advantage of Mexico having more trade agreements than the U.S.
FCA also plans to use some of the tax savings to give a $2,000 bonus to its roughly 60,000 employees as a monetary thank you.
“These announcements reflect our ongoing commitment to our U.S. manufacturing footprint and the dedicated employees who have contributed to FCA’s success,” said CEO Sergio Marchionne in a statement. “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.”