Zacks Investment Research raised Fiat Chrysler Automobiles from a "hold" rating to a "buy" rating and set a $20.00 price objective for the company in a research note on Wednesday, December 20th. With the investment, the company said, Warren Truck would have the flexibility to also produce the Ram Heavy Duty.
At the same time, the company says that it will make a special bonus payment of Dollars 2'000 to some 60'000 FCA hourly and salaried employees in the US, excluding senior leadership. The bonus will be paid to all eligible employees of the FCA automotive and components operations. President Trump showered praises on Twitter saying, "More great news as a result of historical Tax Cuts and Reform".
The new $1 billion Warren investment, still subject to the negotiation and final approval of state and local tax incentives, will prepare the plant on Mound Road, south of Nine Mile Road, to build the next-generation Ram Heavy Duty truck.
Thursday's announcements were made in advance of the North American International Auto Show.
The Center for Auto Safety, a consumer advocacy group, petitioned the US National Highway Traffic Safety Administration in November to investigate the issue after it said at least 50 owners had reported stalling in new Pacifica minivans.
Fiat Chrysler Automobiles N.V., a United Kingdom based automotive manufacturer, has chose to spend Dollars 1 billion to shift its heavy-duty truck production facility from Mexico to MI.
The company said the move solidifies the U.S.as a manufacturing hub for Ram vehicles.
Fiat Chrysler has announced it will shift production of heavy-duty Ram trucks from Mexico to metro Detroit by 2020.
The plant in Saltillo, Mexico will be repurposed to produce commercial vehicles for global distribution, FCA announced. More than 700 new jobs will be added to support production.
During the 2016 presidential campaign then-candidate Donald Trump frequently attacked Ford Motor Co. and other automakers for importing vehicles from Mexico, threatening to enact a "big border tax" once elected.
In an announcement January 11, the automaker said the investment will solidify the U.S.
Trump is also seeking to revamp the North American Free Trade Agreement (NAFTA) with Canada and Mexico, and has encouraged U.S. businesses to bring jobs back home from across the southern border.
Alabama's total incentive package to Toyota and Mazda is to top US$700 million after local incentives are added to what the state offered to land the companies' new U.S. factory. SHAP used to be the built site for the Chrysler 200 and Dodge Avenger, but now that they are gone, the plant has been retooled to build the popular Ram 1500.