Fiat Chrysler commits $1bn to US plants www.bbc.com
Fiat Chrysler Automobiles (FCA) has announced a $1bn (£816m) investment to produce three Jeep models in the US.
Under the plan it will also move the production of a Ram pickup truck from Mexico to the US.
The location of car production has become a sensitive issue, as President-elect Donald Trump is critical of firms that have moved production to Mexico and has threatened to impose tariffs.
However, BMW has told the BBC it will go ahead with a new plant in Mexico.
The German car giant is spending $1bn on a new factory at San Luis Potosi to make its 3 Series cars for sale across North America.
BMW sales and marketing director Ian Robertson told the BBC that the firm was "absolutely" committed to the facility.
He added that the company was investing a similar sum of money in a plant in South Carolina and pointed out that BMW was the biggest exporter of cars from the US.
President elect Donald TrumpImage copyrightGETTY IMAGES
The president-elect has threatened car makers with a "border tax" if they make cars in Mexico and sell them in the US.
Last week Ford cancelled a $1.6bn plan to build a plant in Mexico and instead decided to expand operations in Michigan.
Ford boss Mark Fields said the decision was partly due to falling sales of small cars and partly a "vote of confidence" in Mr Trump's policies.
On the same day as Ford's announcement, Mr Trump had criticised General Motors on Twitter for making cars in Mexico and importing them into the US.
"General Motors is sending Mexican-made model of Chevy Cruze to US car dealers tax-free across border. Make in USA or pay big border tax!" he tweeted.
Job creation
FCA said its announcement was the second phase of a plan, first outlined in January, to expand in the market for pickup trucks and sports utility vehicles (SUVs).
It will invest in a plant in Michigan, so that it can produce two new Jeep SUVs and take on the production of a Ram truck, currently made in Mexico.
An Ohio plant will be retooled to make a new Jeep pickup truck.
As a result, FCA says that 2,000 jobs will be added.
Published Date:2017-01-09