By on January 12, 2018

Ram HD production Saltillo assembly, Image: FCA

There’s good news this morning for Fiat Chrysler worker in the United States, and it’s also good news for members of the Trump administration.

The automaker has announced plans to sink another $1 billion into its Warren Truck Assembly plant and bring production of its Ram Heavy Duty models to Michigan from Saltillo, Mexico. At the same time, some 60,000 hourly and salaried workers in the U.S. can expect a $2,000 bonus (paid in the second quarter of 2018) in recognition of “their continued efforts towards the success of the company.” The move also means 2,500 previously unannounced jobs for Michigan.

What’s behind all of this sudden goodwill? Recent changes to the country’s tax landscape, FCA claims.

“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,” said CEO Sergio Marchionne in a statement.

So, how does this production shuffle play out, and what’s the backstory here?

In late 2016, FCA delayed a planned revamp of its HD truck models, leaving Saltillo in charge of building older models while the automaker retooled its Sterling Heights plant (at a cost of $1.5 billion) for the next-generation Ram 1500. The old 1500, produced at Warren and Saltillo, will soldier on in dwindling numbers for a couple of years. HD and chassis cab models have hailed from Mexico since the late 2000s.

The HD switcheroo comes in 2020, with the delayed next-gen model setting up shop in Warren. Slated for production alongside the trucks is a reborn Jeep Wagoneer and Grand Wagoneer. The retooling needed for those SUVs, announced a year ago, carries a $1 billion price tag (part of which covers costs for the Jeep Scrambler pickup, bound for Toledo). Meanwhile, Saltillo will be “repurposed to produce future commercial vehicles for global distribution.”

There’s no word on what form those vehicles will take.

Ram Heavy Duty Saltillo Mexico assembly, Image: FCA

Worker bonuses and tax changes aside, a glance at the company’s timeline of decisions suggests HD production was bound for the U.S., anyway. It fits with a trend among Detroit Three automakers — increasingly, we’ve seen high-margin vehicle production come stateside while lower-profit models are offloaded to other jurisdictions.

The announcement of the Ram HD’s redesign delay came in early December 2016, shortly after the election of a president determined to scrap or rewrite the North American Free Trade Agreement. The possibility of import tariffs remains a real concern. In its January 2017 funding announcement, FCA said Warren Truck would “have the flexibility to also produce the Ram heavy duty truck.”

It certainly appears as if FCA’s seeking to insulate itself from any surprises. Regardless, the move of HD trucks to Warren — still subject to negotiation and final approval of state and local incentives — is undoubtedly good news for American workers.

[Image: Fiat Chrysler Automobiles]

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92 Comments on “Fiat Chrysler to Bring Heavy Duty Pickup Production Back to U.S., Shower Workers With Cash...”


  • avatar
    kvndoom

    I wish these companies were giving raises instead of bonuses. One is cumulative and benefits more long-term. (Of course the bean counters know this, and they’ve already calculated the one-time “good feels” won’t hurt the bottom line at all)

    When my department unionized last year (UGH) we got a $1000 ratification bonus. I would have gladly let them keep their friggin money in light of the benefits we lost to reach that point.

    • 0 avatar
      Jeremiah Mckenna

      There have been several companies that are giving raises as well as bonuses. It will take a few months for others to ‘count their beans’ in order to see how much of a raise they can give to their employees.

      Sorry to hear that you are now union. I personally have never had any positive experiences with any of the unions I was *cough, forced, cough* to join. Hopefully it works for the better in your case.

      • 0 avatar
        Lou_BC

        The vilification of unions worked well in Operation Condor too.

        But hey, the USA is a mess because of those godless commie Chinese!

        • 0 avatar
          kvndoom

          Personally I’m not vilifying unions (they can be a blessing or a curse depending completely upon the ethics of a specific company), but were it appropriate to go into the long painful details of the journey that got us here, you’d get a migraine from rolling your eyes.

          I will only say that we lost a LOT of perks and benefits. The only upsides (literally the only two) are slightly higher pay in 3 years’ time than if we had remained salaried, and holidays/vacation now count towards overtime. This contract was so horrendous that only 4 people voted. The rest argued, screamed, and cursed and walked out. Unfortunately they didn’t know how the labor laws worked so by abstaining to vote they were legally voting “yes.”

          • 0 avatar
            DeadWeight

            Now that all future RAM pickups will be assembled in the U.S.A. (Sterling Heights or Warren) with a total investment of 2.4 billion between those two heavily modernized facilities, and having U.S.A. parts % content that is also relatively high….

            MAYBE GENERAL/Guangzhou MOTORS WILL ONE DAY PRODUCE ALL THEIR PICKUPS IN THE U.S.A. (of U.S.A. Made parts, also).

          • 0 avatar
            highdesertcat

            “MAYBE GENERAL/Guangzhou MOTORS WILL ONE DAY PRODUCE ALL THEIR PICKUPS IN THE U.S.A. (of U.S.A. Made parts, also).”

            Highly unlikely. Last time GM did, they died, were nationalized and bailed out by the taxpayers.

            Ms Barra should focus on money-making GM core brands, and sell off Cadillac and Buick to China.

          • 0 avatar
            Lou_BC

            kvndoom – my comment wasn’t aimed directly at you. I do agree that there are pros and cons.

    • 0 avatar
      Jeremiah Mckenna

      But one thing you have to remember in a union shop, the company can’t arbitrarily hand out raises, even if it is across that board. That has to go through negotiations and other committee meetings. But I’m sure it will work it’s way out.

    • 0 avatar
      TMA1

      Lisa needs braces!

    • 0 avatar
      danio3834

      They are giving raises. Salaries are generally confidential so you won’t hear much about that.

    • 0 avatar
      Arthur Dailey

      If the workers lost benefits, that means that management demanded concessions. Without the union they could have removed those benefits without any negotiation or offset, meaning that the workers would most probably have lost them anyway.

      Unions were meant to address the power imbalance between an individual worker and their employer, by presenting the employer with a ‘united’ front.

      The balance of power between the two swings back and forth based on external factors such as the economy, trade agreements, demographics/labour markets, and internal factors such as management competence, market share and product development.

    • 0 avatar
      MoparRocker74

      A tax reduction…or reduction in ANY cost of living beats a pay raise all day long, and once the reform takes effect, most people will see a significant relief. Widespread pay raises mean a widespread rise in the cost of living which means inflation. Which means youll have no more buying power than you did before the raise.

      Think about it…in 1970, if you made $50K a year, you were incredibly well off. Now, that’s just barely a living wage.

      • 0 avatar
        highdesertcat

        Landlords, Trucking Companies and Grocery stores will raise, match or supersede any pay raises.

        We just raise the rent on all our properties to whatever the market will bear. (As we do every year)

        • 0 avatar
          PrincipalDan

          @highdesertcat – Every year?

          You’re a ray of sunshine.

          • 0 avatar
            highdesertcat

            PrincipalDan, generally yes, every year.

            We do have a number of German military on contract and their rent stays the same for the length of their stay (~3yrs depending on training). But they rent individual homes with a swimming pool and ALL the amenities, so they already pay a respectable sum.

            Also, because of the relatively high turnover of sunbirds and other transitory renters (like those in the US Military or Contractors waiting to buy a house), most new renters get their own, personalized rental agreement upon their arrival.

            Just like every other rental agency does in ABQ, SFE and LC. But probably not in your area.

            It’s even more vicious in CO, WY, SD and TX where there exists an even greater shortage of rentals. You would not believe what a one-room, 1-bath Studio rents for there.

            More than my military retirement pay each month. Hell, I couldn’t afford it.

          • 0 avatar
            PrincipalDan

            s/Now we just need Charles Dickens to write a story about you.

      • 0 avatar
        Big Al from Oz

        Mopar,
        I’m having issues with some of the pre-school quality economics discussed here.

        1. Payrises do contribute to inflation, but there are other factors, significant factors which makes your economic paridigms laughable.

        2. As income increases you will see productivity increases. What this does is offset the payrise.

        3. Due to productivity increases, our production becomes more competitive, hence producing more, ie, productivity out strips the cost of the payrise.

        4. Investment now in robotics means more can be produced per person, off setting the payrise.

        5. This is a balance between the investment (say robotics) vs human effort.

        6. This productivity based improvement has been occurring since year dot in human development.

        7. Your argument indicates, we are behind with no benefit from increases in income. So why are we so much better off now than 100 years ago?

        This is my supporting arguement for a livable minimum wage. Costs will not rise much as productivity gains would offset most costs, leaving income eaerners (consumers) with a greater disposable income increasing production. The side affect of this is greatly reduced welfare expenditure, reducing tax.

  • avatar
    Sub-600

    Good news. Now get to work tooling that Dodge Barracuda line.

  • avatar
    kamiller42

    Ram will manufacturer a new heavy duty truck, the Ram MAGA.

  • avatar
    pmirp1

    As I said before, this is a economy powered by Trump. First during last year, the country and stock market reached peaks in record time for stock market and low unemployment for all sectors (Hispanics, African Americans, …). This was in expectation of a tax cut and an environment where companies didn’t have to put up with idiotic over regulation imposed by prior administration. Trump was the power behind deregulation. Remember the idiotic Obama high EPA numbers that he wanted to impose soon.

    Now with the tax cuts, the stock market is on fire. If you have money, put it in the market. It will hit 30000 by end of this year. Companies are hiring, bonus and increases everywhere, and American manufacturing and investment are coming back (Apple in Wisconsin, Ram Trucks, Toyota and Mazda in Alabama). America first baby.

    I wonder when Chevy will finally be embarrassed into bringing and building Silverado with high content in America. Shame on Chevy for building these expensive vehicles in Mexico and having such high non north American content.

    • 0 avatar
      gtem

      “I wonder when Chevy will finally be embarrassed into bringing and building Silverado with high content in America. Shame on Chevy for building these expensive vehicles in Mexico and having such high non north American content.”

      This. They can’t trot out the “razor thin margins” line like they can for slow selling Cruzes or whatever else. These are GM’s cash cows. Made in Mexico with Chinese and Malaysian parts. Apparently Flint is starting to get in on the crew cab half-ton action (still with low domestic part content), but it’s a start. Ford should absolutely torch GM in ads about the low domestic content+MX assembly. Then again Ford wants to start bringing in Chinese Foci and possibly Fusions so maybe they’re thinking ahead :/

      • 0 avatar
        ajla

        Haha. GM is not capable of shame.

      • 0 avatar
        Jeremiah Mckenna

        You guys do realize that there are still a ton of GMC/Chevy trucks made here in the US, as well as Canada, right?

        These are just a few:

        Current factories
        Name City/State Products
        Flint Tool & Die Flint, Michigan
        Flint Truck Assembly Flint, Michigan Chevrolet Silverado GMC Sierra
        Fort Wayne Assembly Roanoke, Indiana Chevrolet Silverado GMC Sierra.

        You can check out the rest here. It has a chart of all of the manufacturing plants around the world.

        https://en.wikipedia.org/wiki/List_of_General_Motors_factories

        • 0 avatar
          PrincipalDan

          @Jeremiah – yes but GM build certain cab configurations in certain places.

          Aren’t all crew cabs built in Mexico? Doesn’t Fort Wayne now only build standard and double (extended) cabs?

          • 0 avatar
            Jeremiah Mckenna

            This is GM’s web page, and it shows the entire factory locations and their individual history and what was and is still being manufactured at those sites. You can fish around and find all sorts of information there. http://media.gm.com/media/us/en/gm/plants-facilities.html

            This site has a picture of the inside of the Fort Wayne, Indiana plant with a double cab rolling off the line.
            http://media.gm.com/media/us/en/gm/news.detail.html/content/Pages/news/us/en/2015/dec/1210-ft-wayne.html

            Flint says they make Heavy-Duty Chevrolet and GMC Sierra Crew and Regular Cab Trucks, Light-Duty Chevrolet Silverado Crew and Regular Cab Trucks.

            http://media.gm.com/media/us/en/gm/company_info/facilities/assembly/flint.html

            It all depends on the VIN as to where it comes from.

        • 0 avatar
          gtem

          Most of GMs’ cash cow crew cab half tons are made in Silao, with less than 50% US parts content. Fort Wayne makes double-cabs and reg cab half tons with a likewise dwindling amount of American content. As mentioned, Flint is starting to make more of the crew cab half tons and HDs, but a causal glance at cars.com points to the vast majority still being “3” VINs (hencho en mexico).

      • 0 avatar
        Jeremiah Mckenna

        “Chinese Foci”

        that sounds like a disease or skin infection. I’m not definite, but I’m pretty sure that Ford makes cars and doesn’t have anything to do with medical diseases or their treatments.

        Or did you mean Chinese made Focus?

        • 0 avatar
          gtem

          Plural of Focus is Foci, at least that’s how I’ve read it everywhere for years. What point are you trying to make, exactly?

          • 0 avatar
            Jeremiah Mckenna

            Foci is technically the plural term for Focus when used as a noun, typically to describe a focus point in mathematics.

            The Ford Focus is a proper noun since it is that models name.

            As said by Ford executives, the plural is not “Ford Foci” as some may assume, but rather “Ford Focuses”.

            Are you confused about how to show the plural and the possessive of certain names? Maybe you know to write I met the Smiths, I drove Brenda Smith’s Ferrari, and I visited the Smiths’ house. But what if the name is Sanchez or Church or Williams?

            Rule: To show the plural of a name that ends with a ch, s, or z sound, add es. If a name ends in ch, but is pronounced with a hard k sound, its plural will require s, rather than es.

            Examples:
            The Sanchezes will be over soon.
            The Thomases moved away.
            The Churches have arrived but the Bohmbachs are running late.
            Rule: To show singular possession of a name ending in ch, add ’s on the end of the name.

            Example:
            Harry Birch’s house
            Rule: To show singular possession of a name ending in s or z, some writers add just an apostrophe. Others also add another s. See Rules 1b and 1c of Apostrophes for more discussion.

            Examples:
            Bill Williams’ car OR Bill Williams’s car
            Mrs. Sanchez’s children
            Rule: To show plural possession of a name ending in s, ch, or z, form the plural first; then immediately use the apostrophe.

            Examples:
            the Williamses’ car
            the Birches’ house
            the Sanchezes’ children

          • 0 avatar
            IBx1

            ^^ Someone’s fun at parties…

          • 0 avatar
            Lou_BC

            Triggered irritable cerebral foci

          • 0 avatar
            gtem

            LOL

            Thanks for the heads up big guy

    • 0 avatar
      sco

      ”You know it’s time to sell when shoeshine boys give you stock tips.”

    • 0 avatar
      Lou_BC

      “As I said before, this is a economy powered by Trump.”

      Hmmmmm……Impressive….. Most impressive…..

      Darth Twitter has taught you well.

      • 0 avatar
        pmirp1

        Lou_BC,
        I see you have been brainwashed. If Trump could stop talking stuff that MSNBC likes to quote 24×7, he would be ahead.

        In the meantime, I take his positives, and ignore his crazy statements.

        When it comes to his words and policies about the economy, the market and unemployment and bonuses and raises are talking loud and clear.

        It is a difference between a community organizer and a businessman.

        Leave the rest for gossip channels. Stick to business and you’ll ahead.

        • 0 avatar
          Jeremiah Mckenna

          I couldn’t have said it better. He needs a filter.

          • 0 avatar
            Lou_BC

            @pmirp1, Jeremiah Mckenna – thanks for proving my point. LOL

            “I couldn’t have said it better. He needs a filter.”

            “A filter”

            Censorship is an effective fascist tool!

        • 0 avatar
          Arthur Dailey

          @pmirp1: economies and markets follow trends. The American economic upswing started 2 years prior to Trump’s inauguration. And it mirrors economic upswings in other nations like Canada.

          What Trump has not done, is initiate any actions to slow down or disturb the trend. But then, his administration has passed very little legislation.

          And historically ‘business people’ have failed abysmally when attempting to govern. Government is meant to plan for the long term and develop a consensus among competing interests. Modern business is almost the opposite of this.

          • 0 avatar
            Jeremiah Mckenna

            A slow uptick in the economy powered by low paying jobs is one thing, but we all know that the stock market is powered by futures and speculation. We also know that the economy is powered by businesses and their ability to expand. Expansion is also powered by speculation, and the election of Donald Trump has had a tremendous effect on positive speculations. The tax laws and lower regulations and removal of burdensome regulations by President Trump has also had a positive affect on the economy and businesses.

            So you are correct, Mr. Trump has not initiated anything that would slow growth, he has initiated more growth and at an even faster pace as well as allow businesses to grow and hire more and raise wages and bring back as well as create higher paying jobs.

          • 0 avatar
            Arthur Dailey

            @Jeremiah, largely true. Investment requires either a) borrowing of money or b) the use of money derived from past profits. Corporate profits and available capital reached all time highs the previous few years. It is this capital that is largely now being used.

            The role of Head of State should be to set the tone for the nation. Cheerleader in Chief in many ways. Setting an optimistic tone like JFK generally leads to confidence among the population.

          • 0 avatar
            pmirp1

            Arthur Bailey you must not know about the market. I assume you are not an active investor.

            S&P 500 went up 2% in 2015.
            S&P 500 went up 11% in 2016.

            In 2017, with economy powered by Trump it went up 25%. My portfolio increased by similar percentage.

            What that should tell you is the Trump effect is real. He unleashed the economic might of America. Instead of putting it on a short leash.

            He promised reduced taxes and delivered. The market reacted to that.

            He reduced regulations by many executive orders or his agencies cut back on regulations.

            Remember the Keystone pipeline from Canada. Trump allowed it to go forward.

            Remember him giving Utah back the millions of acres to do as she wants?

            Remember the elimination of individual mandate (part of tax law).

            Remember the Paris accord and how he got us out of it so that companies are not stifled by unreal regulations.

            Not to mention he used the power of presidential podium to scare companies from outsourcing more. Every day.

            How can you say he didn’t disturb or change the trends.

            When it comes to business, Trump has powered it immensely. Be real.

          • 0 avatar
            MoparRocker74

            Yup, business people governing is a TERRIBLE idea. OTOH, those community organizers with zero private sector resume…they REALLY know whats up.

          • 0 avatar
            stingray65

            Arthur,
            It seems you need a little economics lesson.

            When Obama increase taxes, people and companies have less money and will invest and spend less = slow or negative economic growth.

            When Obama increases minimum wages and healthcare costs of firms, they will hire fewer people = slow or negative economic growth.

            When Obama increases fuel prices due to various “green” policies, people and companies have less money and will spend less = slow or negative economic growth.

            When Trump does the opposite of Obama, people and companies have more money, more confidence in the future, and invest and spend more = rapid economic growth.

          • 0 avatar
            golden2husky

            Arthur, you are correct. Sadly, when election time rolls around, the low information voters incapable of critical thinking in Michigan that voted T-Rump last time will be brainwashed into thinking that this was the work of Our Great “s-hole countries” leader. Between stuff like this and the very successful “red-state” gerrymandering in that state the party of the 1% have little to worry about when it comes to switching Michigan blue in 2020.

            pmip1 – pretty much everything you cite as good (market growth excluded) i consider bad and a step backward. Regarding that market growth, I get that the sitting President get the glory (or blame) but really, most economists indicated that this trajectory would likely have happened even it “crooked Hillary” had gotten into office. We just get bad presidential manners and polluted air as a bonus.

        • 0 avatar
          30-mile fetch

          Yes, it’s that simple pmirp.

          Carrier employees are SUPER thrilled:

          http://www.foxbusiness.com/markets/2018/01/10/new-layoffs-at-indiana-carrier-factory-year-after-trump-deal.html

          China is ecstatic:

          https://www.newyorker.com/magazine/2018/01/08/making-china-great-again

          The stock market increased steadily throughout Obama’s term but we shan’t consider that, and this benefits the ruling class in far greater proportion anyway (just like the tax cuts) because you first must have money to make money.

          And while the claim that Trump would be worth more simply investing his father’s fortune in index funds isn’t quite true, his business career is a shameful combination of dishonesty, playing the system, bankruptcy, and self-aggrandizement that he managed to turn into a tacky gauche brand. It’s pathetic, but the rich can piggyback off of his occupation of the White House to further widen the income gap.

          Stop worshiping idols. It’s a complex world.

          • 0 avatar
            FreedMike

            Exactly. If the guy lives by the “bring more jobs here” sword, he dies by it too. But someone who’s hopelessly partisan will ignore the bad stuff.

            Cooler heads on both sides know the president’s impact on hiring is limited, at best, and any impact is long-term, not short-term.

          • 0 avatar
            28-Cars-Later

            I’m on board with, some of that.

            The secret of great fortunes without apparent cause is a crime forgotten, for it was properly done. – Balzac

          • 0 avatar
            Arthur Dailey

            And Trump’s father inherited his money from his father (Donald’s grandfather) who initially made his fortune running an illegal brothel in the Yukon.

            Not that, that really matters as the Kennedy fortune was primarily due to bootlegging and the Bush fortune was greatly enhanced by financial dealings with Nazi Germany.

          • 0 avatar
            28-Cars-Later

            The difference between treason and patriotism is only a matter of dates.

            Dumas, The Count of Monte Cristo

          • 0 avatar
            PrincipalDan

            “Support your country always and your government when it deserves it.”
            – Mark Twain

          • 0 avatar
            Lou_BC

            “When 900 year old you reach, look as good you will not.”

            Yoda

            I’m on a Star Wars bent :)

          • 0 avatar
            pmirp1

            30-mile fetch, As I indicated above to Arthur Bailey, stock market went up 25% in 2017, and is doing amazingly well this year (I predict another 25%). Invest if you have the money. I am already set for life (three homes with a vacation spot in Savannah, 2016 Stingray, 2014 Mustang GT premium, Grand Cherokee and soon an F150). Annuity good for 50 years at six figures.

            The fact that you remember Carrier is telling. That is the Trump effect. He has done that to Boeing (remember the presidential planes).

            Using the presidential pulpit every day to scare companies from outsourcing.

            Why do you think RAM came back to be manufactured in America? Is it because of Obama policies? Is it a natural trend.

            Why is Apple bringing money invested overseas back to America?

            Stock market went to unbelievable depths in 2007-2008 before recovering. Some of it was natural cycle. What I am pointing at is the regulations and no support for business which stifled the market.

            Ask yourself, when was the last time you heard companies raising wages, giving bonus. Did that happen during Obama’s recovery?

            Crickets…. Crickets….

            The power of America is business. Trump has allowed business to do business. The rest is there for you to look at market instead of copy pasting stories.

          • 0 avatar
            Arthur Dailey

            @Primp1: I have been actively investing in stocks since the mid 80’s. Including TransCanada. Unfortunately a significant portion of what you wrote is either incorrect or greatly oversimplified.

            I could spend about 15 minutes sourcing, citing and demonstrating that, but you would probably just try to call it ‘fake news’.

            Autocracy depends on the willfully blind. And the ‘cult of personality’. Facts are its enemy.

            &P 500 went up 2% in 2015.
            S&P 500 went up 11% in 2016.

            In 2017, with economy powered by Trump it went up 25%. My portfolio increased by similar percentage. How could your portfolio double the performance of the markets?

            What that should tell you is the Trump effect is real. He unleashed the economic might of America. Instead of putting it on a short leash. Gibberish.

            He promised reduced taxes and delivered. The market reacted to that. Reduced taxes for the wealthy. Trickle down is a proven fallacy.

            He reduced regulations by many executive orders or his agencies cut back on regulations. The results are yet to be seen. Investments by corporations take time. Those that have occurred were generally planned in the previous fiscal year.

            Remember the Keystone pipeline from Canada. Trump allowed it to go forward. How has this impacted things as it is not yet built?

            Remember him giving Utah back the millions of acres to do as she wants? HuH?

            Remember the elimination of individual mandate (part of tax law). Sorry this is something I do not know much about.

            Remember the Paris accord and how he got us out of it so that companies are not stifled by unreal regulations. Again the changes are in the future.

            Not to mention he used the power of presidential podium to scare companies from outsourcing more. Every day. Incorrect. Ask Carrier workers.

            How can you say he didn’t disturb or change the trends.

            When it comes to business, Trump has powered it immensely. Be real. Why, you obviously are not. Wal-Mart for example gave raises then cut 11,000 jobs.

          • 0 avatar
            pmirp1

            Arthur Bailey,
            You called my information fake news and you didn’t want to provide a link. Here I do it for you since you don’t (can’t) refute my comment about stock market performance.

            https://www.thebalance.com/stock-market-returns-by-year-2388543

            Second you had indicated stock market and economic performance were related to Trump actions. I gave you example after example which you then tried to pick on some.

            Third you said Sams closed some stores forgetting the minimum wage raise to $11 for all wall mart employees. Those Sams stores are not competitive with Costco. Economic condition. Same for Carrier. There will still be losers in economy, but to pick on a few and lose sense of overall market performance is not seeing forest for trees.

            Clearly you don’t understand business and economy and are clueless about Trump effect. So I stop and wish you luck as you don’t understand what is happening in market today.

          • 0 avatar
            golden2husky

            Who was the winner from our backing out of TPP? Why China was! MAGA.

            BTW, he did not call your information “fake news”…he said you would likely refer to his links as “fake news”….comprehension counts…

          • 0 avatar
            Big Al from Oz

            pmirp1,
            People can be loosely placed into 2 groups.

            There are those who consider, we must gain the upper hand through aggression, we “win” etc and those who approach issues with a partnering attitude.

            You appear to fit into the group that thinks the US made the World and the percieved shortcomings is due to US generosity. The US from a business perspective has done well. The US doesn’t give anything away.

            The approach also you have is if the US is not competitive then someone is cheating the US, not there could be someone better than the US. You know, kust because an activity is carried out in the US means its the best, even car manufacturing. This weakness will place you in situations where you can’t comprehend your competition, forcing people like you revert to an aggressive stance. This is counterproductive ie DTrump.

            Even in business the winner takes all approach will eventually lose out, ie bankruptcy (again DTrump).

            You cannot approach business that way, latitude must be given.

            Competition and trade is most beneficial with partnerships. You exploit your strengths. You will profit more this way. Trade between countries is much more than dollars and cents, its about security. If allies gradually become disaffected with dealings they will hedge their countries future via differnt means (China the EU).

            What this does is move trade to these other “partners” and guess what, the US loses out.

            Under DTrump the partnering aspect of negotiations is neglected and an aggressive approach is presented. Even the comment he made to the Norwegian leader that “Norway is a good country because the trade balance favours America” is aggressive and sends the wrong signals.

            As time moves forward the US is becoming more redundant to trade with. The US was built on trade, but it can’t dictate trade as proportionally the global trade balance is shifting to Asia, the US will not stop this and the tantrum like episodes from DTrumps aggeessive position has accelerated the global shift in geopolitics. We should be able to see how much the US falls behind in the future as its trading position weakens.

            The people who support Brexit should reconsider, as UK influence in the EU weakens so does the US EU position. How? The UK is the main conduit of US influence into the EU.

  • avatar
    gtem

    Fantastic news. IMO gasser Ram 2500 HDs are crazy bargains, the “3” VIN was however more than a little off-putting. I fully support a Ram Powerwagon MAGA edition.

    • 0 avatar
      danio3834

      I challenge anyone to take a Power Wagon up a rocky mountain trail and then swear it’s not one of the greatest vehicles known to man.

      • 0 avatar
        Lou_BC

        I don’t know anyone with a Power Wagon but all of the Jeep guys I know with sway bar disconnect say that is a feature that makes a huge difference at slow speeds over terrain. They do say however that the sway bar disconnect system tends to get plugged up with mud if you are running through truly deep goo.
        The Power Wagon with its coil springs and decreased payload ratings along with sway bar disconnect would be excellent. It is a truck that is definitely on my “fantasy garage” list.

      • 0 avatar
        Adam Tonge

        There are those that dispute the Power Wagon’s greatness?

      • 0 avatar
        gtem

        Unfortunately the power wagons are the ones that are a) pricey to begin with and b) keep that disparity as used trucks, believe me I’ve window shopped them lol. I love that the Ram 2500 kept a solid front axle and a manual t-case lever. The Powerwagon’s super beefy axles with selectable locking diffs, swaybar disconnects, and available winch are what take it to another level. I may poke fun at Chrysler/FCA quality, but they’ve got genuine car guys in positions to bring really capable very cool stuff like this to market. If I was in a power wagon rather than my 4Runner over the holidays I may have had better luck traversing some frozen over mudholes. As it was I tucked tail and ran after the first submersion and recovery.

  • avatar
    Jeremiah Mckenna

    This sounds great to me. Most people don’t understand how many other businesses are greatly and positively effected by large companies moving into their area. These factories retooling and 2,500 jobs opening in that one company will mean the surrounding businesses will also benefit by those dollars now being spent, which allows them to hire more people.

    Detroit will benefit greatly.

  • avatar
    PrincipalDan

    So after the New RAM goes into production will “Old RAM” (you know the one that actually looks like a RAM truck) be built in BOTH locations or just one?

    • 0 avatar
      Jeremiah Mckenna

      I don’t know if they will close the Mexican factory all together, but the trucks sold in the US/Canada will be built in Michigan. If there are still trucks being built in Mexico, they will more than likely continue to be sent to other places that have beneficial trade agreements with Mexico.

      • 0 avatar
        PrincipalDan

        “The old 1500, produced at Warren and Saltillo, will soldier on in dwindling numbers for a couple of years.”

        My thought was – given that Saltillo needs to be retooled to build commercial vehicles (per the article) at some point they’ll shut down Saltillo for retooling. I also guess that RAM intends to build more new body style trucks than old body style trucks fairly soon after new truck production starts.

        I was just curious that come 2019 when their are RAM “Classics” sitting on dealer lots if they will all have the same vin origin.

    • 0 avatar
      DenverMike

      Probably both. Ram trucks are #1 in Mexico and if NAFTA is killed, Ford will have to build F-series in Mexico (or Brasil) if they want to sell them there.

  • avatar
    Lou_BC

    In many respects, this shift isn’t surprising. The so-called “Detroit three” have been moving production of their high profit vehicles like pickups and SUV’s to the USA and offloading low profit cars to low cost centres.
    Instability around NAFTA is another huge factor.
    Companies do not make these sort of decisions on short notice. Sucking up to #45’s ego is a big part of the optics of this decision. FCA being an Italian owned company with head office in the Netherlands and tax centre in England is well aware of playing the system.

  • avatar
    FreedMike

    So what production moves to the plant in Mexico?

    (A Jeep of some kind would be my guess.)

    • 0 avatar
      MoparRocker74

      Some of the small commercial vans with a large export market, I think. AND, if FCA wants to re-enter the small/midsize sedan market even as a bit player, theyd be wise to do so out of Saltillo. Those just cant be built at a profit in the US or Canada. Its possible a Chrysler variant of the Tipo could be be made there.

    • 0 avatar
      TwoBelugas

      Per FCA commercial vehicles for foreign markets, which makes sense.

  • avatar
    I_like_stuff

    This can’t be. I was assured by very smart liberals that companies would take their tax savings and buy back shares and stuff. Conclusion: this must be FAKE NEWS.

  • avatar
    Sub-600

    “These manufacturing jobs, they’re not coming back, folks.” – B. Hussein Obama

    • 0 avatar
      golden2husky

      Well, if the high profit vehicle production gets moved here and the low profit vehicles get moved offshore, what have we gained? Locally perhaps, but nationally?

      Most consumer goods, certainly those that are price sensitive, are never coming back, at least until there are no longer any poor countries to exploit. And I think the supply of them is pretty much inexhaustible for quite a few generations at least.

      • 0 avatar
        gtem

        “Most consumer goods, certainly those that are price sensitive, are never coming back, at least until there are no longer any poor countries to exploit.”

        Story time: there’s an ironing board factory in Seymour Indiana, one of the only ones left in the US. They make plain jane stamped/tube steel ironing boards, the kind you buy at Wal-Mart, for about $30 a pop. A simple tariff keeps the Chinese stuff priced near the same amount. The factory in Seymour keeps several hundred people employed, makes a perfectly good quality ironing board, and the consumer pays a quite reasonable $30 for an item they might buy once every two decades or when they move.

        A lot of plastic totes and other injection molded type stuff is strong in the US, Sterilite has a factory in Canton Ohio that’s actively hiring. Stuff that is raw-material intensive and less labor intensive (people operating presses and machines) is still fairly competitive to make in the US. The freight of shipping halfway across the world + QC/oversight costs make keeping it here attractive. I’ve bought a Coleman cooler, garden hose, and some warm hiking socks at WalMart in the last year or so, all made in USA and very reasonably priced.

    • 0 avatar
      highdesertcat

      “These manufacturing jobs, they’re not coming back, folks.” – B. Hussein Obama

      The damage inflicted on the US, its economy and its tax-paying people by that guy’s economic policies can never be undone, reversed or made whole again for the folks who lost everything during these eight years in the dark ages.

      From the day that Donald J. Trump was elected, America’s economy, stock market, and America’s promise has taken off.

      I didn’t vote for Trump, but I sure like what he has done for me and mine since getting elected.

      Nothing political here. Just a reflection of the difference in MY life between the last guy in the White House and the new guy in DC.

      Elections most certainly do have consequences!

      Thank you President Trump!!!

      • 0 avatar
        Loser

        “folks who lost everything during these eight years in the dark ages”.

        What are you talking about? Have some examples? I’m no huge fan of Obama but do you not remember what the economy was like when he took over? As for Trump, I have no respect for a guy that dishonored POW’s.

        • 0 avatar
          highdesertcat

          C’mon now, you can’t be THAT naive? Maybe you are a revisionist with selective memory?.

          Do YOU remember the selective handouts, bailouts and nationalization?

          How about all the mom&pops that went under? How about all the small suppliers to the US auto industry that went belly-up?

          Gawd! We had tons of discussion on ttac on just those topics 2009-2015.

          What matters to me is how well the policies of the guy in the White House are working for me and mine. And the last guy’s policies sucked for many a working man and woman in America. Remember redistribution of America’s wealth from the taxpayers to the freeloaders?

          I remember what the economy was like when the last guy took over from Shrub. And I also can see for myself the sea change in the US economy that has happened, is happening, and continues to happen in America since the new guy got elected in Nov 2016.

          It’s been ALL GOOD for me and mine with this new guy. And I never was able to say that about the stint of the last guy.

          Things are soooo great for me with the new guy that for the first time since 1985, I actually have to file a joint-tax return by April 17th.

          And I’m not the lone ranger here either. My friends in business are doing a booming business for the first time since 2008.

          And it seems to me that this new guy is paying much homage to the US Military, retirees, POWs et al.

          The POW you are referring to being dishonored fired the first salvo AGAINST Trump saying all sorts of nasty things about Trump not being fit for office.

          I didn’t know anything about Trump, pre- 2016. I did not vote for him. Was told by the media that there was no way he could get elected.

          Now I know he’s got a lot more money than I have. And he ought to have his head examined to take a step down from his previous lifestyle and prestige to his current lifestyle.

          Since he didn’t *need* this job I have to conclude that he wants to make America better than it was. Some people care. Looks to me like Trump cares.

          And for me he has already succeeded in making MY life better. My guess is that for a lot of other American citizens he has succeeded as well.

          Now, if We, The People, can only succeed to vote the do-nothing politicians out of office, then we voters will succeed in making America Great Again.

          • 0 avatar
            Loser

            I’m sadly amazed by the amount of intelligent people still fooled by this con man and continue to make excuses for all his nonsense.

          • 0 avatar
            highdesertcat

            Trump may very well turn out to be a con man, but at least this guy has real-world experience in making money and did not rise from the slums of Chicago with the sole job experience of being a community organizer.

            Trump got elected because he voiced the hopes and dreams of the “silent majority” in America. Even some ‘crats voted for Trump. Unbefukkinglievable!

            The last guy got elected in 2008 because he was likeable. Many people who voted for Trump thought he was despicable and exactly what America needed in a leader they elected in 2016.

            Even people who hate Trump benefit from his better economic policies. Union people and other ‘crats vested in the stock market based retirement funds have seen their fortunes increase exponentially.

            California’s retirement system (hugely invested in the stock market) may just be saved by the Trump effect on the stock market. Gotta love the irony!

            You know, things are going to get a whole lot worse for the anti-Trump crowd before he leaves office. Trump got elected on turning the whole swamp on its head, and he is doing just that.

            Only the looney lefty libbies are having their minds blown.

            Everyone else just loves the good times and good tidings for the forgotten American men and women, like having freeloaders work for their Medicaid. That’s going nationwide this year. Look for it.

          • 0 avatar
            Dynasty

            “I’m sadly amazed by the amount of intelligent people still fooled by this con man and continue to make excuses for all his nonsense.”

            You must be talking about Obama. Supposedly born in Hawaii. But strangely used to be known as Barry Soetero. Went to college in the US as a foreign student. And even stranger most of his records from his younger years sealed or destroyed.

        • 0 avatar
          Dynasty

          “As for Trump, I have no respect for a guy that dishonored POW’s.”

          You mean John McCain? Songbird McCain?

          • 0 avatar
            bd2

            Wow – something here has drunk deeply from Faux News and whatever Breitbart is.

            As for Drumpf, he’s a HORRIBLE businessman (how many of his businesses have gone bankrupt?).

            Drumpf knew little about the Casino biz, the airlines biz, or running an USFL franchise.

            But at the very least, he should know something about REAL ESTATE? Right?

            But that dimwit started a MORTGAGE company in 2017 – right at the height of the subprime bubble when anyone who knew anything about the RE biz knew that bubble was about to burst.

            Of course, Drumpf announced how his new mortgage company was going to be the “best” and hire the “best people” (his usual claims which are, as usual LIES).

            And surprise, surprise – a few months after all that bloviating, his mortgage company quietly closed it doors.

            Drumpf is good at conning people who are too stupid to know better (hence all those who got conned by Drumpf “University” – which is no different from all those late night TV get rich schemes).

            He’s lied about never having settled lawsuits (has settled plenty when his claims about investing in his RE venture didn’t pan out) and of course, Drumpf has plenty of lawsuits from contractors and other businesses who never got paid what they were owed (many others just settled for less than what rhey were owed as they couldn’t afford going thru a costly court battle).

            And that’s all in addition to Drumpf having threatened numerous people with lawsuits.

            If Drumpf had simply invested the fortune his father had left him (Drumpf actually got his older brother disowned) in a common INDEX fund, he would be far wealthier than he is today.

            So, no – Drumpf isn’t a good businessman aside from selling Drumpf-branded Chinese-made crap to the masses.

            As far as his economic policies – he hasn’t been in office long enough for them to have had any real effect.

            Usually, it takes years for a President’s policy to have effect on the economy.

            For instance, Reagan saddled Bush SR with the recession arising from the S&L scandal which cost Bush a 2nd term.

            With the huge tax cut for the wealthy and reasonable govt. regulation going by the wayside, expect a recession to hit in the next 3-5 years.

  • avatar
    Art Vandelay

    Why is it a foregone conclusion that US makers have to produce smaller “less profitable” models elsewhere. It was all over the local news that we are getting a joint Toyota/Mazda plant in Huntsville this week. This plant will produce, among other things, the Corolla. The Japanese seem to be able to build small vehicles in the US at a profit. And Huntsville is not some backwater…it has a very well educated populace and a good standard of living unlike some areas you see these plants going up in.

  • avatar
    Big Al from Oz

    This is good news. Correct me if I’m wrong but I do recall FCA discussing the possibility of moving some Ram production back to the US.

    Also, what deals have been cut behind the scenes with the State/county/city?

    If all is good in the US now and pickup manufacture is very competitive, start winding back the Chicken Tax.

    MAGA is all about “fair” competition, isn’t it?

  • avatar
    Big Al from Oz

    This is good news. Correct me if I’m wrong but I do recall FCA discussing the possibility of moving some Ram production back to the US.

    Also, what deals have been cut behind the scenes with the State/county/city?

    If all is good in the US now and pickup manufacture is very competitive, start winding back the Chicken Tax.

    MAGA is all about “fair” competition, isn’t it?

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