Fiat Chrysler to invest USD 5.3 billion in its plants

Fiat Chrysler Automobiles has planned to invest$5.3 billion in its US plants and proposes moving its US car production to Mexico, thus concentrating on SUV and crossover production in the US. Theproduction of the Chrysler 200 sedan would move from toToluca, Mexico, while the Ram 1500 pickup truck would move toSterling Heights Assembly.



Fiat Chrysler Automobiles and the United Auto Workers are negotiating a labour agreement which could bring major changes to the FCA'sproduction facilities.The Mexican plant currently builds the American version of the Fiat 500 and the Dodge Journey. If the agreement getsgoing, theproduction of the American Fiat 500 will move to Poland, where European-spec models are also made.

Production of the Jeep Cherokee, would move from Toledo Assembly Complex to Illinois,as theproduction of the Dodge Dart, will also move to Mexico. The Dodge Viper will remain at its current production facility, the Connor Avenue Assembly in Detroit.

Recently, FCA has also proposed a merger with General Motors, which is thought to be beneficial to both groups. Though GM is not to keen right now, industry sources predict that this may be the way forward for both companies to exploit each other's strengths.