In the latest announcement in its ongoing restructuring of US manufacturing, Fiat Chrysler will invest $1 billion to modernize its plant in Warren, Michigan.
The plant currently produces Ram 1500s. Production of the next version of the 1500 will shift to another plant, allowing the modernized Warren plant to manufacture two new Jeeps.
In 2020, Fiat Chrysler will also shift production of Ram Heavy Duty trucks to Warren from Saltillo, Mexico, resulting in a net increase of 2,500 jobs at the plant.
This post is based on the NY Times article, Fiat Chrysler to Spend $1 Billion to Modernize Michigan Plant, by Neal E. Boudette, January 11, 2018.
1. What is the trend for auto demand in the US?
Guidance: Two major trends include growing demand for larger, roomy vehicles instead of compact and midsize cars, and growing pressure from the government to bring foreign auto production back to the U.S.
2. What is Fiat Chrysler’s response to the trends above?
Guidance: The company will make more trucks and fewer cars, shifting production of sedans to light trucks at its Sterling Heights plant, retooling its existing Warren plant to focus on producing Jeeps and heavy duty Continue reading