Fiat to invest $1 billion in U.S plants after Trump's Threats
Less than a week after president-elect Donald Trump threatened Ford and Toyota with taxing vehicles produced in Mexico, the U.S branch of Fiat-Chrysler (FCA) announced on Sunday that it would invest a total $1 billion in plants in Michigan and Ohio.
The investment, which will add 2000 new jobs in the United States, came days after Ford Motor Company decided to scrap a plan to build a facility in Mexico, instead opting to invest in a plant in Michigan.
President-elect Donald Trump has vowed to impose a "border tax" on companies that send jobs abroad.
The move "is a continuation of the efforts already underway to increase production capacity in the U.S.on trucks and SUVs to match demand," the company said, adding that it would help solidify the U.S. as "a global manufacturing hub" for its flagship brands.However, Fiat indicated it would still continue to produce at least one line, its Ram heavy duty truck, in Mexico.
Ohio and Michigan are two of the key states that gave the presidential election victory to Donald Trump in the last presidential election, reports El País, leading Spanish newspaper. During the campaign, it promised to impose a 35% tariff on vehicles imported from low-cost countries.
Despite the clash with the White House's next tenant, Detroit makers believe Trump's policies are good for the industry.
Chrysler, like General Motors, had to be rescued in 2009 after declaring itself bankrupt. The third US manufacturer surpassed the bankruptcy after being acquired by the group Fiat. The company explains that this announcement, combined with the announcement last summer, "demonstrates the commitment" to strengthen the manufacturing base in the country and adjust it to the growing demand for Jeep models.
As reported in El País.