Fiat Chrysler announces large US investment amid Trump pressure


Fiat Chrysler Automobiles announced Sunday it would invest 1 billion dollars in its Jeep brand in the US creating 2000 jobs in the process, as carmakers come under pressure from the incoming US administration.

The Italian-American carmaker said it will spend the money on expanding its manufacturing plants in the states of Michigan and Ohio.

The company also said it would move production of the Ram pickup truck from Mexico to the US.

The decision comes amid scrutiny from president-elect Donald Trump who is pushing manufacturers to invest in the US, threatening those which do not with higher taxes.

Fiat Chrysler’s chief executive Sergio Marchionne said however the moves had been under discussion “for some time.”

The US-based Ford Motor Company last week cancelled plans to build a 1.6-billion-dollar small-car plant in Mexico choosing to instead spend 700 million dollars to expand an existing Michigan factory.

Trump on Twitter thanked Ford for “creating 700 new jobs in the US. This is just the beginning – much more to follow.”

Trump last week also denounced Japanese carmaker Toyota’s plans to build a new factory in Mexico and export cars built there to the US.

“Toyota Motor said will build a new plant in Baja, Mexico, to build Corolla cars for U.S. NO WAY! Build plant in U.S. or pay big border tax,” Trump said on Twitter.

Toyota chief executive Akio Toyoda told reporters that the company would consider Trump’s comment in decisions regarding its business in Mexico.