Thanks to the recent GOP tax reform, Fiat Chrysler Automobiles is able to move some of its truck production from Mexico back to Michigan, reports CNN Money.
The automaker announced Thursday that it will spend more than $1 billion to revamp its Warren Truck Assembly Plant, which will start making the Ram heavy-duty truck in 2020. The truck is currently made in Saltillo, Mexico.
Fiat Chrysler said that it will add 2,500 jobs in Michigan to help support the move. The company also said it’s giving one-time $2,000 bonuses to 60,000 U.S. workers.
“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,” CEO Sergio Marchionne said in a press release.
Chrysler said they don’t plan on shutting down the Saltillo plant, but declined to say on which models will be made in the Mexico plant after Ram production moves north.
The company said the investment announced Thursday is separate from a 2015 labor deal with the United Auto Workers union. FCA had pledged to invest $5.3 billion in American plants to guarantee additional union jobs as part of that agreement, reports CNN.
The number of companies that have announced employee bonuses and the number of minimum wage hikes going up is all thanks to the Republican made tax reform bill that passed last month. The new law lowers the corporate tax rate from 35% to 21% which has helped these employers give back more to their employees.
The move also comes amid continued negotiations over North American Free Trade Agreement negotiations. The next round of talks between the U.S., Canada and Mexico start January 23 in Montreal.
Fiat Chrysler had already been planning to bolster production at the Warren plant. In January 2017, the company said it would spend $1 billion to expand factories in Ohio and Michigan, creating 2,000 jobs total. Some of that money was earmarked for Warren, where FCA said it plans to start making the Jeep Wagoneer and Grand Wagoneer by 2020.
Vice President Mike Pence was also overjoyed by the news of American business investing in America once again.
.@FiatChrysler_NA to relocate truck production from Mexico to Michigan. 2,500 new U.S jobs AND pay bonuses made possible by passage of tax reform. Manufacturing is back. Great announcement. Proof that this admin’s AMERICA FIRST policies are WORKING! https://t.co/Xe3ipZlfVN
— Vice President Mike Pence (@VP) January 11, 2018