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Automaker Invests $1 Billion In Michigan Plant Thanks ‘In Part’ To Recent Tax Reform

Some of the first substantial results of the 2017 tax overhaul have arrived, and this state is seeing green.


Some of the first substantial results of the 2017 tax overhaul have arrived in the form of two actions by international corporation Fiat Chrysler. If you are looking to buy an American-produced vehicle in the next few years, it looks like your options are expanding: Fiat Chrysler will move production of its Ram Heavy Duty Truck from Mexico to Michigan, as well as invest “more than $1 billion” in the Warren, Michigan, plant.

The news came in a January 11 press release detailing that the investment means the automaker will add 2,500 jobs at the Michigan plant. The release also announced special bonus payments of $2,000 to approximately 60,000 of Fiat Chrysler’s U.S. employees (the release made sure to mention the bonuses excluded “senior leadership”).

Both actions were “made possible in part by the passage of U.S. tax reform legislation late last year,” according to the release.

Fiat Chrysler will not close its Mexico plant. It will start producing “commercial vehicles for global distribution” there instead. The company does not expect to make the changes to the Mexico and Michigan plants until 2020.