Fiat Chrysler Automobiles on Sunday announced a $1 billion investment to modernize manufacturing plants in the U.S. mid-west and create 2,000 new jobs.
The announcement stated that the company's investment would allow a plant in Warren, Michigan to manufacture the popular Ram heavy-duty pickup truck which is currently being produced in Mexico.
The Warren plant will also make two new SUVs -- the Jeep Wagoneer and the Grand Wagoneer. Another plant in Toledo, Ohio will also get new equipment to enable its manufacture of a new Jeep pickup truck, reports CNN Money.
In recent years, SUVs and pickup trucks have been more popular than sedans among U.S. consumers as gasoline prices have remained relatively low.
The automaker's investment, made in response to President-elect Donald Trump's threat to slap new taxes on imported vehicles, will see the creation of 2,000 new production-related jobs by 2020.
United Automobile Workers President Dennis Williams said in a statement that the union is happy with Fiat Chrysler's decision. "These investments will benefit UAW members, their families and communities by providing greater job security and a world class manufacturing environment," he said.
Fiat Chrysler's investment in U.S. manufacturing follows on the heels of similar actions taken by rival automobile brands. Ford announced on Tuesday that it is cancelling a $1.6 billion plant in Mexico in favor of a $700 million investment in a Michigan assembly plant.
German automaker Daimler AG plans to invest $1.3 billion to expand sport utility vehicle (SUV) production at a factory in Alabama while Volkswagen plans to invest $7 billion in the United States between 2015 and 2019 and will start building its new Atlas SUV in Tennessee later this year, reports Reuters.
This anticipated revival of automobile manufacturing in the United States can be attributed to President-elect Donald Trump's public chastising of automakers. Trump recently criticized GM for manufacturing cars in Mexico at a low cost and then selling them in the U.S. He also threatened practitioners of this policy with a "big border tax."