Fiat Chrysler Automobiles N.V (NYSE: FCAU) on Sunday announced to invest $1 billion in its two existing plants in the United States and create 2000 new jobs. The investment will help retool and modernize the factories in Ohio and Michigan, the Italian-American company said Sunday ahead of the Detroit auto show. The new plants will produce a new jeep, including a pickup model, and the Grand Wagoneers. The company also said it may move the production of Ram HD trucks from Mexico.
"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," FCA said.
The move came after the threat from President-elect Donald Trump, who vowed to impose taxes on imported vehicles. Trump had criticized Ford Motor Co., General Motors Co. and Toyota Motor Corp. for building plants in Mexico. Last week, Ford announced to cancel its $1.6 plant in Mexico and invest $700 million in a plant in Michigan. “It’s finally happening,” Trump wrote in a tweet Monday morning. “Thank you Ford & Fiat C!”
But the decisions are not related to Trump’s recent criticisms, people familiar with company’s moves said on Sunday. “We don’t make investment decisions based on risk of a tweet,” Chief Executive Officer Sergio Marchionne told reporters during a roundtabe at the North American International Auto Show.