Report: Fearing US leaving NAFTA Fiat Chrysler moving plant from Mexico to Michigan

On Thursday Fiat Chrysler announced it was moving its plant from Mexico to Michigan.


Fiat Chrysler Automobiles (FCHA.MI) (FCAU.N) said on Thursday it will shift production of Ram heavy-duty pickup trucks from Mexico to Michigan in 2020, a move that lowers the risk to the automaker’s profit should President Donald Trump pull the United States out of the North American Free Trade Agreement.

Fiat Chrysler said it would create 2,500 jobs at a factory in Warren, Michigan, near Detroit and invest $1 billion in the facility. The Mexican plant will be “repurposed to produce future commercial vehicles” for sale global markets. Mexico has free trade agreements with numerous countries.

Fiat Chrysler Chief Executive Sergio Marchionne a year ago raised the possibility that the automaker would move production of its heavy-duty pickups to the United States, saying U.S. tax and trade policy would influence the decision.

This is great news. 2500 jobs will be created and there will be a $1 Billion Dollar investment in the facility which will end up being an investment in the American Economy. What the media is failing to make a big deal out of is the fact this seems to be due to Trump’s stance on NAFTA. He has been talking about renegotiating the deal for quite some time but nothing has come of it yet. Reports have claimed Trump is softening his stance while some right-wing outlets are claiming Trump is ready for a big win on it. I can’t confirm either side but this report does confirm that just his rhetoric is making a difference.

If the US left NAFTA FIAT would be forced to pay a 25% duty or tax with their plants in Mexico. This would affect their bottom line and so they reinvested in America and brought over 2500 jobs back.

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