Fiat Chrysler reconsidering move of Ram production from Mexico

Production of Ram’s heavy-duty trucks may not be ending in Mexico after all.

Fiat Chrysler Automobiles CEO Mike Manley is reportedly reconsidering a decision announced in January to stop making Ram heavy-duty trucks at a plant in Saltillo, Mexico. That earlier announcement said the production would be shifted to the Warren Truck Assembly Plant, and Fiat Chrysler, in a statement Monday, said the plan to move production to Warren as part of a $1-billion investment remains in place.

“Moving the Ram Heavy Duty to Warren from Mexico is our plan of record. Of course, we always assess latest market and economic conditions when making significant industrial moves,” according to the statement.

During the earlier announcement, FCA said it would repurpose the Saltillo plant to build future commercial vehicles for global distribution.

The possible switch in plans, according to Reuters, would allow FCA to boost production capacity of other truck models as the company battles for sales with Ford and General Motors.

“We need to get ourselves into second (place). Frankly, I don’t care which of the two I take share from,” Manley said, according to Reuters.

The potential move of truck production from Mexico to Michigan has been touted numerous times by President Donald Trump as proof that his policies are working to boost jobs in the U.S. The previous plan, which was announced under then-CEO Sergio Marchionne, preceded the recent deal reached on a renewed trade agreement between the U.S., Mexico and Canada.

“With a combination of Warren and Mexico building what we call the classic truck, we have enough production to increase output next year if it’s required. In my opinion it will be required. We are gaining share. Obviously, I am looking for that to continue, but it’s an incredibly competitive segment,” Manley told the news service.

Source: https://www.freep.com/



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