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After Ford announced last week that would scrap an investment worth $1.6 billion in Mexico and instead, use the money to improve current plants in the United States and hire as many as 700 workers, Fiat Chrysler has followed suit. Fiat which has acquired United States’ Chryslers’ assets during the Great recession said that it would invest $1 billion in the United States to modernize two existing plants in the United States and that would add as much as 2000 jobs. Fiat announced that a plant in Warren, Michigan, near Detroit, would make the Jeep Wagoneer and Jeep Grand Wagoneer SUVs, while a Toledo, Ohio factory would produce the Jeep pickup. However, the company said that the plan would depend on the negotiations and actual incentives from the states and local entities.
After the President-elect took to twitter to criticize the automakers such as Ford, General Motors, and Toyota calling them to focus their productions in the United States, instead of Mexico, a clear trend is emerging. Automakers are announcing investments and hiring plans for the United States in order to avoid criticism from the President-elect, which has caused share price turmoil for those who face twitter criticisms.
It is a sign that if the President-elect pushes forward with his tax and tariff plans it could revolutionize the US manufacturing in his first four terms.
