The plant now builds the Ram 1500 but will switch to next-generation 2500 and 3500 Heavy Duty models in 2020.
Production of the heavy duty trucks will be relocated to the Warren Truck Assembly plant in 2020, which was made possible in part by the passage of USA tax reform legislation late past year, according to the automaker.
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First, the company confirmed it will invest more than $1 billion to modernize the Warren Truck Assembly Plant (Michigan) to produce the next-generation Ram Heavy Duty truck, which will relocate from its current production location in Saltillo, Mexico, in 2020.
The plant in Saltillo, Mexico will be repurposed to produce commercial vehicles for global distribution, FCA announced.
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The investment at the Warren, Mich., assembly plant follows plans detailed in January 2017 to expand the factory to build all-new Jeep Wagoneer and Grand Wagoneer SUVs.
The addition of the new models at the Warren Truck Assembly plant will see about 2,500 jobs created. The automaker said the tax reform will also enable it to provide a $2,000 bonus to each member of its roughly 60,000-strong workforce in the U.S. The payment, which recognizes employees for their continued commitment to the company's success, will be made in the second quarter of this year, and will be in addition to any profit sharing and salaried performance bonuses that employees would otherwise be eligible to receive in 2018.
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"These announcements reflect our ongoing commitment to our US manufacturing footprint and the dedicated employees who have contributed to FCA's success", FCA CEO Sergio Marchionne said in a statement. He says employees should also share in the tax savings.