FCA Plant Production Shuffle Revealed in UAW Labor Agreement
Cars Going to Mexico, Trucks and SUVs Move Plants
Following the tentative labor agreement between Fiat Chrysler Automobiles (FCA) and the United Auto Workers (UAW), the company’s future manufacturing plans have been revealed, according to Automotive News. As part of the deal, production of trucks and SUVs will be shuffled among U.S. plants and production of most car models will go to Mexico. Of the Detroit Three, FCA is perhaps most reliant on truck and SUV sales for its profits.
Under the proposed plan, production of the Ram 1500 will move from Warren, Michigan, to Sterling Heights, Michigan, and production of the Chrysler 200 sedan, currently built at the Sterling Heights plant, would move to Toluca, Mexico. Toluca currently builds the U.S.-spec Fiat 500 and Dodge Journey. The Jeep Cherokee, currently built on the second line at Toledo, Ohio, assembly, would move to Belvidere, Illinois. The Dodge Dart, which is currently built in Belvidere, would join the 200 in Toluca. The change would make Toldeo entirely body-on-frame, with the Cherokee line retooled to build a Wrangler-based pickup. That also potentially gives Toledo the capacity to build Ram 1500 pickups if there is high enough market demand.
Warren Truck will likely switch to a unibody plant to build the upcoming Jeep Grand Wagoneer. The Grand Cherokee will continue to be built at the Jefferson North plant, but additional production could potentially be sourced from Warren. Ram HD trucks will continue to be sourced from FCA’s plant in Saltillo, Mexico.
Source: Automotive News