FCA announce's Ram Heavy Duty Truck production will moved to Warren,Mich.

[Eagle6.7L]

Automotive news is reporting that FCA announced that it will move Ram truck production of the Ram 2500/3500/4500/5500 from Saltillo,MX to Warren,Mich assembly starting in 2020.It had been speculated that Warren was building additional track space for another line other than a Jeep product.Most concurred that Ram would not be competitive in pricing if a tariff was imposed by the US.Also Ram could not meet the imposed US parts content requirement as well.This will also allow Cummins to ship directly to the Michigan plant rather than via Chicago then south across the border.This is a great move by FCA it now will be able to say "Made in the USA",this also was a gripe among some buyers of HD Trucks that I only buy USA made trucks.As you also know GM builds it's HD in US as well.Smart move FCA.

 

[Michaelsloft]

GOOD NEWS! 2020 Model will be here soon and MADE IN the USA!

 

[PT02063]

Great news for the U.S. but will leave a huge hole in the economy in Saltillo. I've been to that plant and it employs over 4,000 Mexicans and has over 300 robotics. Am certain they will build something else there but is a huge hit for a factory that has been building Rams since 1995.



http://media.fcanorthamerica.com/image-gallery.do?method=view&imageGalleryId=914&mid=

 

[spoon059]

Its a shame for Saltillo, they build a quality product down there. On the other hand, its good that we are able to employ more American's here. I'm not one of those people that gave a darn where a vehicle is made, so long as it is made well. The fact of the matter is that all these large manufacturing companies get huge tax incentives for building in the States, so the argument of tax dollars is pretty much a wash. No matter where they are made, sales tax is collected at point of sale, so the argument of tax dollars is a wash again. No matter where they are made, if they are sold in the US then these companies are paying payroll taxes, SSI/Medicare, employees are paying income tax, etc. All these companies are public traded "for profit" entities, so profits don't directly benefit our country unless you own stock in them.

The fact of the matter is that some companies, like GM and Chrysler, took bailout money to stay profitable, while other companies, like Toyota and Honda, didn't take any US tax dollars to stay profitable. Its hard to argue that $20 billion in bailout is somehow better for the country than Toyota and Honda owning manufacturing plants in the US, employee US assembly workers and all the other related taxes.

Anyhow, I guess that means that the Gen 5 Ram likely won't hit the HD market until this plant comes on line.

 

[Learjet]

Make America Great again !!!

 

[nukegm]

i read a related article that saltillio mex. will be phased to bigger trucks than the 2500/3500.





bringing back jobs to usa is awesome. MAGA.

 

[Deleted member 995608]

Awesome!!!

 

[Cummins12V98]

Read the article! Even Chrysler is giving bonuses to it's workers. And they said the EVIL corporations would keep all the money from the tax cuts.

Heck even WalMart is giving bonuses and raising starting wages plus improving health care coverage.

Both my 98's were made in StLouis and were excellent quality. But of course the guys at that time that had the Mexi ones said their quality was better. All of the 4 RAM's I have owned have been excellent even the last two Mexi ones. More jobs here, thanks President Trump!!!

 

[SCOTTY088]

Great News!!!! I retired from a American Company that moved it's production to Saltillio, Mex. What a slap in the face to the American workforce that was. I was ashamed to buy a truck made in Mexico. Great news the economy warrants a return to the Motor City. Make America Great again...

 

[PT02063]

Agree 100% Scotty. I absolutely love the fact those jobs are coming back to the US...just making a general comment about job losses anywhere. I’ve been on the ****ty end of the layoff equation and it sucks regardless of nationality. In the end, we’re all just trying to feed our families.

 

[SCOTTY088]

I'm with you bro. I have been fortunate to work for a American Company and retire after 37 yrs in the union with a great pension. I went through all the ups and downs in my carreer also. It cuts the American worker to the bone to see layoffs and job loss and work going south of the border, hopefully this is a new trend to bring America back to the industrial capital of the world. We can only hope...

 

[spoon059]

i read a related article that saltillio mex. will be phased to bigger trucks than the 2500/3500.





bringing back jobs to usa is awesome. MAGA.

That's a great deal for all involved then. Hope quality remains as high when they come back home. From what I recall, the quality improved when they moved south.

 

[SCOTTY088]

Chryslers quality has been in the toilet since before the Daimler Chrysler era, They had to improve the quality and fit and finish or drop off the map. I must say they have done a stellar job of improvement. If they can maintain that in the future they will be unstoppable.

 

[KPear]

Its a shame for Saltillo, they build a quality product down there. On the other hand, its good that we are able to employ more American's here. I'm not one of those people that gave a darn where a vehicle is made, so long as it is made well. The fact of the matter is that all these large manufacturing companies get huge tax incentives for building in the States, so the argument of tax dollars is pretty much a wash. No matter where they are made, sales tax is collected at point of sale, so the argument of tax dollars is a wash again. No matter where they are made, if they are sold in the US then these companies are paying payroll taxes, SSI/Medicare, employees are paying income tax, etc. All these companies are public traded "for profit" entities, so profits don't directly benefit our country unless you own stock in them.

The fact is, US corporations had previously been taxed at 35%; under the new rate they will be taxed at 22%. That is a big difference, and certainly not a "wash" in the grand scheme of things. Certain companies can get incentives from states and counties under certain circumstances, but if you think those incentives were negating the 35% corporate rate (which was quite a bit higher than most of the developed world), then please provide some sources which prove that.

The lower corporate tax rate is motivating a few companies to move some of their business back into the States; FCA isn't the only one. Some of these companies have already given raises to their employees and others have already stated that they intend to create more jobs; so the idea that a lower corporate tax won't directly benefit Americans is unfounded.

Saltillo may lose some jobs, but Mexico has plenty of other manufacturing opportunities. Moreover, the quality of the 3/4 and 1 ton's coming out of that plant has been anything but stellar. Personally, I'm looking forward to the vehicles being made in the US again: more jobs in Michigan (which could really use the work); more business assets for the local and federal governments to tax; and hopefully more quality control by FCA.

 

[TCDiesel]

Benkpak Back in 2008 announce it was moving Much of its manufacturing to China, They were losing Money, I looked for the article, Didn't find it they clearly stated the operating cost were Just to High in America, They said the choice was slow death in America or close up shop..Or move ..They Now are talking about bringing (Some) of it Back to America.We are now opening Facilities in Australia (Bio-Clean) and believe Me Taxes have a big impact, even on the small scale for Corporate expansion.

 

[spoon059]

The fact is, US corporations had previously been taxed at 35%; under the new rate they will be taxed at 22%. That is a big difference, and certainly not a "wash" in the grand scheme of things. Certain companies can get incentives from states and counties under certain circumstances, but if you think those incentives were negating the 35% corporate rate (which was quite a bit higher than most of the developed world), then please provide some sources which prove that.

The reality is that with while the corporate tax rate was 35%, the effective rate was about 22% taxes based upon rebates and loopholes. I hope this link works, https://www.treasury.gov/resource-c...ocuments/Average-Effective-Tax-Rates-2016.pdf .Trumps new tax regulations just clean up a lot of the rebates and loopholes, but don't really lower too many corporate tax bills. In fact, it is possible that with some of the rebates and loopholes disappearing, some corporations will be paying substantially more taxes as a result

Currently, pickups and vans produced outside the US are subject to a 25% import tariff. https://fee.org/articles/chicken-tax-makes-trucks-expensive-and-unavailable/ So... if they made it in the US they are paying a 22% effective rate in the past, or a 22% corporate tax now. If they made in Mexico and imported they pay a 25% import tariff. Granted, corporate taxes and import tariff's aren't equal in what they tax. I don't have access to the numbers to be able to tell you exactly how much money is obtained from one tax as opposed to the other tariff. Based upon what I know, it is relatively close. Then when you consider local communities giving additional tax breaks and subsidies to entice job development to the area, those differences get smaller and smaller.

There is a reason that Kia, VW, Toyota and Honda manufacture vehicles in the US. They were able to structure deals that lowered their overall tax and cost basis enough to make it worthwhile to manufacture in the United States and pay higher salaries and more benefits to American employees. There is also a reason that Ram manufactured the HD pickup line in Mexico. They determined that it was more cost effective for them to build in Mexico and avoid paying American manufacturing workers. Clearly something changed that led them to move back to the United States. Its doubtful that Trumps new tax plan was the impetus, because there is a lot of planning involved before making that decision.

 

[TCDiesel]

Spoon059. I've notice that a portion of the American workers recognize that much better Job behavior pays off..remember that video of the Dodge employee's drinking and smoking pot on lunch break? they returned to work and were paid the same $ as the rest, Now many workers are fed up with that ss**** and turning they counterparts in, By means of video Etc.... Form Time to time We need union employee's to work those Jobs its require on. Go to Union Hall and find the ones sitting on their Hands and state we need Ten but you will be drug screened... Yep 5 or more beg off take the rest and see. I don't lord over anyone's personal life ,but if your job shopping/Hunting and you can't stay of drugs for that time frame shows your employment is way down on the list of important things. yes workers that are drug Free are safer and more productive, and in many case self producers.

 

[spoon059]

Ha, no I don't know if I've ever been aware of that. Unions are great in theory, the problem is that a lot of unions get caught up providing protections for EVERYONE, even if it is detrimental to most of them. I am in a union and see it first hand. The union fights for the rights of the problematic employee even at the expense of the rest of us. I wish our union would stop protecting the bottom feeders, causing strife with management. If they weren't so busy protecting the troublemakers, mgmt might be more willing to work with the union's requests.

 

[Regcabguy]

Unions are fine if you can fire incompetent or insubordinate employees.
I retired from the schools here and a good friend who was a union steward spent most of his time defending just such employees.
He couldn't stand the frustration and bailed.

 

[dayawide]

I thought this was a diesel truck forum not a union bashing Trump forum.