Published: Sun, January 14, 2018
Hi-Tech | By Ellis Neal

FCA Announces $1 Billion Investment, Employee Bonus

FCA Announces $1 Billion Investment, Employee Bonus

The Italian-American automaker will pay each USA hourly and salaried employee a $2,000 bonus in the second quarter of 2018.

The announcement from the Italian-American automaker comes a day after Japanese automakers Toyota and Mazda announced plans to build a huge, $1.6 billion joint-venture auto plant in Alabama, which garnered attention from Trump. "We got a great group of people there at Warren truck plant". Separately, the Euro-American automaker announced plans to pay $2,000 bonuses to 60,000 US hourly and salaried employees this coming spring. Apparently, the bonus amount will be rolled out in the second quarter of this year in surplus of performance-related & profit-sharing bonuses. The new measure lowers corporate tax rates to 21% from a previous 35%.

If the U.S. exits the NAFTA, it could mean that automakers would pay a 25 percent duty on pickup trucks assembled in Mexico and shipped to the US.

In November 2017, the Center for Auto Safety (CAS) filed a petition calling on the U.S. government's National Highway Traffic Safety Administration to investigate the issue and order a recall of the 2017 vans in question after over 50 people complained of the stalling problems. The move from Saltillo, Mexico, will take place in 2020.

The company said the move solidifies the a manufacturing hub for Ram vehicles.

$350 million in the Belvidere Assembly Plant in IL to produce the Jeep Cherokee, which moved from Toledo, OH, in 2017.

The Saltillo plant will shift to building commercial vehicles, FCA said in the announcement.

The company's investment will be targeted toward producing its Ram Heavy Duty trucks. More than 700 new jobs will be added to support production.

Fiat/Chrysler is the latest company to offer bonuses to employees in the wake of the passage of President Trump's and Republicans' tax cut law, and they're big ones.

In addition, Trump scolded automakers last year for building vehicles in Mexico to little effect - auto imports from Mexico to the US hit a record level last year.

The move also protects Fiat-Chrysler from tariffs if the US exits the North American Free Trade Agreement, something some negotiators and experts say looks increasingly likely. Accern identifies negative and positive press coverage by monitoring more than twenty million blog and news sources.

Macomb County Executive Mark Hackel says he's "excited" about heavy-duty Ram production joining the Dodge Ram light truck, which is made at nearby Sterling Heights Assembly.

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