Un $4,5 billion investment to boost US manufacturing and foster the expansion of the Jeep and Ram brands. This was the announcement made yesterday, February 26, by Fiat Chrysler Automobiles. The Mike Manley-led company will build a new manufacturing plant in Detroit and ramp up production at five other plants in Michigan. Through these operations, FCA estimates the creation of approximately 6.500 jobs. The amount of investments made in the United States from 2009 to today therefore rises to 14,5 billion dollars, while the number of jobs reaches 30 thousand units.
The important innovations announced for the moment do not warm up the title which on Piazza Affari dropped 0,2% to 13,08 euros, retracing the performance of the Ftse Mib (-0,17%), while on the New York Stock Exchange the shares ended the session down by 1,3% .
Going into details, the plan foresees to allocate 1,6 billion dollars to the conversion of the two plants Mack Avenue Engine Complex at the plant that will produce the next-generation Jeep Grand Cherokee in the future and a new Jeep brand three-row full-size SUV and plug-in hybrid (PHEV) models. There will be 3.859 new jobs to support manufacturing.
As regards the new establishment instead, its construction will begin within the first six months of 2019, while the production of the first three-row vehicles will start in the end of 2020, followed by the new Grand Cherokee in the first half of 2021.
Going forward, 900 million will be used to upgrade the plant Jefferson North which produces the Dodge Durango and the next generation Jeep Grand Cherokee. 1.100 jobs will be created here.
FCA also confirmed that the investment in the plant Warren Truck for the production restructuring of the new Jeep Wagoneer and Grand Wagoneer, announced in 2017, along with their electrified models, would rise to $1,5 billion. The Ram 1500 Classic will also continue to be produced at this facility and is expected to create 1.400 new jobs. And again: 245 million dollars will be used to increase the productivity of the plant Warren Stamping.160 for that of Sterling Stamping, where 80 hires are expected.
The listed investments, underlines FCA, are part of the Group's investment plan presented in June 2018 and of the strategy inaugurated in 2016 by Sergio Marchionne. A strategy that involves shift production towards SUVs and pickups, which have intercepted the greatest growth in demand. On the other hand, the production of compact cars has ceased.
“Three years ago, FCA embarked on a path aimed at profitability growth, leveraging the strength of the Jeep and Ram brands through the realignment of our manufacturing capacity in the United States,” he commented in the note. Mike Manley, CEO of the group. “Today's announcement represents the next phase of this strategy. It allows Jeep to enter two high-margin market segments where it currently does not have a presence as well as enabling the production of new electrified Jeep products, including at least four plug-in hybrid vehicles and the flexibility to produce full battery electric vehicles.
Some news also arrives for Italy: in parallel with American investments, FCA has announced to the unions the departure of the production of the new Alfa Romeo C-Suv model in Pomigliano. The weekly shifts will increase from 10 to 12 due to the increased demand for the Fiat Panda. “Good news for Pomigliano. The first investments for Alfa Romeo are starting to take place, we are confident that the more substantial ones that will invest the future assembly lines will be announced soon”, commented Ferdinando Uliano, Fim national secretary. More cautious Edi Lazzi, secretary of Fiom CGIL: “Our concerns for the fate of the Italian (FCA) and Turin plants in particular can only increase. What we have been signaling for some time is confirmed: the progressive shift of the production and economic-financial center of gravity towards North America with a slow but constant disengagement from Europe and especially from Italy”, continues Lazzi.
In this context, it should be remembered that Fiom has interrupted the negotiations for the renewal of the contract: "The conditions for continuing were no longer there" said the general secretary of Fiom Francesca Re David. The negotiation continues instead with the other unions.
