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FCA shifts Ram Heavy Duty trucks from Mexico to U.S., creating 2,500 jobs

DETROIT — Fiat Chrysler Automobiles said on Thursday it will shift production of Ram Heavy Duty pickup trucks from Mexico to Michigan in 2020, a move that lowers the risk to the automaker's profit should President Donald Trump pull the United States out of the North American Free Trade Agreement. Fiat Chrysler said it would create 2,500 jobs at a factory in Warren, Michigan, near Detroit, where the Ram 1500 is currently built, and FCA will invest $1 billion in the facility. The Mexican plant will be "repurposed to produce future commercial vehicles" for sale global markets. Mexico has free trade agreements with numerous countries. Fiat Chrysler Chief Executive Sergio Marchionne a year ago raised the possibility that the automaker would move production of its heavy-duty pickups to the United States, saying U.S. tax and trade policy would influence the decision.If the United States exits NAFTA, it could mean that automakers would pay a 25 percent duty on pickup trucks assembled in Mexico and shipped to the United States. About 90 percent of the Ram pickups made at Fiat Chrysler's Saltillo plant in Mexico are sold in the United States or Canada, company officials said. Negotiators for the United States, Mexico and Canada are scheduled to meet later this month for another round of talks on revising NAFTA. Canadian government officials earlier this week said they are convinced that Trump intends to announce his intention to quit the agreement. Trump has threatened to force the rollback of NAFTA, which enables the free flow of goods made in the United States, Canada and Mexico across the borders of those countries. He also has criticized automakers for moving jobs and investment in new manufacturing facilities to Mexico and prodded them to add more auto production in the United States. View 31 Photos On Wednesday, Toyota and Mazda announced they would build a new $1.6 billion auto assembly plant in Alabama, drawing praise from Trump. Vice President Mike Pence praised Fiat Chrysler's announcement. "Manufacturing is back. Great announcement. Proof that this admin's AMERICA FIRST policies are WORKING!" Pence said in a Twitter posting. Chrysler raised its output in Mexico by 39 percent in 2017 to 639,000 vehicles, according to Mexican government data. That made Fiat Chrysler the third-largest producer of vehicles in Mexico in 2017, after Nissan and General Motors.

FCA cuts powertrain warranties to 60k miles

FCA US is cutting back the mileage of its powertrain warranty on some 2016 model year vehicles. Rather than the current five years/100,000 miles of coverage, the new amount is five years/60,000 miles for gasoline-fueled models from Chrysler, Jeep, Dodge and Ram. In March 2015, General Motors made a similar switch to five-years/60,000-miles of coverage for Chevrolet and GMC, and FCA US seems to be citing this as part of the reason for the shift. "Following changes already made by competitors, FCA US is adjusting powertrain warranty coverage for 2016 model year vehicles to be more consistent with industry practices," the automaker said in a portion of its statement. The bumper-to-bumper warranty for these vehicles is unchanged at three years/36,000 miles. According to Automotive News, Fiat's warranty is remaining at four years/50,000 miles. When it changed the mileage limit, GM also halved the number of free service visits for Chevy, GMC, and Buick to two from the previous four. The automaker claimed that the reason for the adjustments to its coverage was that a long warranty was seldom a reason for customers to buy a vehicle. Related Video: Response to Query: 2016MY Powertrain Warranty Adjustment Following changes already made by competitors, FCA US is adjusting powertrain warranty coverage for 2016 model year vehicles to be more consistent with industry practices. For 2016MY, Chrysler, Jeep®, Dodge and Ram Truck vehicles with gasoline engines will be covered by a 5 year/60,000 mile powertrain warranty. The basic coverage, also known as "bumper to bumper," remains at 3 years/36,000 miles. # # # News Source: FCA US, Automotive News - sub. req.Image Credit: Mark Ralston / AFP / Getty Images Chrysler Dodge Jeep RAM Car Buying Maintenance Ownership FCA warranty fca us powertrain

Did Ram outsell Chevy Silverado for first time in history last month?

Recently released automotive March sales figures point to a major shakeup in the pickup world. Last month, Ram's trucks overtook the Chevrolet Silverado to become the second-best selling vehicle in the segment for the first time ever.
The Ram pickups outsold the Silverado by 285 units in March. Chrysler shifted 42,532 trucks for the month compared to 42,247 for the Chevrolet fullsize. According the Allpar, this is the first time either Dodge or Ram's pickups have outsold Chevy in a month, and the Bowtie has held down the second place spot in the pickup market since 1978 when Ford took over the top spot. The F-Series remains the market's king, with 70,940 sales in March and 173,358 sold since January.
The results may only be a blip. From January through March, Ram has sold 96,906 trucks versus 107,757 for the Silverado. One month of sales figures isn't enough to call this a trend, but it's certainly an interesting data point.