Fiat Chrysler Automobiles (FCA) is the latest corporation to leverage the passage of corporate tax cuts as a springboard for good press. The company has announced a $1 billion investment into its manufacturing operations and a $2,000 bonus for over 60,000 U.S. workers.
FCA’s investment announcement related to the production of its next-generation Ram Heavy Duty pickups. The company says it will invest $1 billion into its Warren, Michigan assembly plant to produce the trucks, starting in 2020. Currently FCA produces Ram Heavy Duty at one of its plants Saltillo, Mexico. Bringing production stateside will ultimately create 2,500 new jobs in the U.S., according to FCA. The Mexico plant will be repurposed to product commercial vehicles.
Both the investment amount and jobs figure are in addition to an investment announcement the company made in January regarding the Warren plant, which will also produce the Jeep Wagoneer and Grand Wagoneer.
Lastly, FCA has announced it will provide 60,000 of its hourly and salary U.S. employees with a $2,000 bonus. FCA is blaming the passage of corporate tax cuts as the reasoning for the bonus and is joining many other large corporations in providing employee bonuses on the basis of the tax cut. Senior leadership is exempt from the bonus.
“These announcements reflect our ongoing commitment to our U.S. manufacturing footprint and the dedicated employees who have contributed to FCA’s success,” said Sergio Marchionne, Chief Executive Officer, FCA. “It is only proper that our employees share in the savings generated by tax reform and that we openly acknowledge the resulting improvement in the U.S. business environment by investing in our industrial footprint accordingly.”