Published: Fri, January 12, 2018
Money | By Armando Alvarado

Fiat Chrysler to give United States workers US$2000 bonuses amid tax cuts

Fiat Chrysler to give United States workers US$2000 bonuses amid tax cuts

Mike Manley, head of the Jeep and Ram brands for Fiat Chrysler Automobiles, says a new Wrangler and Ram 1500 and refreshed Cherokee will make for a good year.

Fiat Chrysler Automobile (FCA) is planning to invest more than $1 billion to modernize its Warren Truck Assembly Plant in MI and create 2,500 additional jobs so it can relocate production of its Ram Heavy Duty pickup truck from Saltillo, Mexico, by 2020. Currently, the truck is made south of the border in Saltillo, Mexico. Senior executives won't get the bonus.

"These announcements reflect our ongoing commitment to our USA manufacturing footprint and the dedicated employees who have contributed to FCA's success", said Sergio Marchionne, Chief Executive Officer, FCA in a statement.

The move also is in keeping with political fears about sourcing outside the U.S.

Several companies have made announcements of employee bonuses in hikes in minimum age since the Republican-controlled Congress passed tax reform legislation in December.

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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. Goldman Sachs Group set a €25.30 ($30.12) target price on shares of Fiat Chrysler Automobiles and gave the company a buy rating in a research note on Thursday, October 19th. During his campaign and shortly after winning the election, the president routinely singled out Ford Motor Co. and other companies in the global auto industry for maintaining or moving production to plants in Mexico.

Today FCA announces an additional $1 billion investment with the decision to follow through and make the move a reality.

A boost to production was already planned by FAC at its Warren plant. With the investment, the company said, Warren Truck would have the flexibility to also produce the Ram Heavy Duty.

The company since June 2009 has invested $10 billion in US plants. More than 300 new jobs were added to support production.

This investment is in addition to the investment the company announced in January past year, where it committed to spending a portion of Dollars 1 billion in Warren Truck Assembly to expand the Jeep product line with the addition of the all-new Jeep Wagoneer and Grand Wagoneer.

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