Report: FCA-UAW Deal Would Move Car Production to Mexico, SUVs to U.S.

Sergio Marchionne With UAW Banner

A tentative deal between Fiat Chrysler and the UAW would shuffle car production from the U.S. to Mexico and production of SUVs and crossovers to the U.S., according to a new report. FCA would also invest $5.3 billion into its U.S. plants, Automotive News reports. The tentative deal would move Ram 1500 pickup truck production from the Warren Truck plant to the Sterling Heights Assembly plant, which would also bump the Chrysler 200 sedan from Sterling Heights Assembly to the automaker’s Toluca, Mexico, assembly plant. Production of the North American version of the Fiat 500 would move from the Toluca plant to Poland alongside the European model, while Dodge Journey production would remain in Mexico. Dodge Dart production would also move from Belvidere Assembly in Illinois to the Toluca plant. Production of the Jeep Cherokee would move from the Toledo Assembly Complex to Belvidere. FCA would convert the half of the Toledo plant that builds unibody vehicles to the next-generation body-on-frame 2017 Jeep Wrangler. Additionally, the current Wrangler plant would be used to build a Wrangler-based pickup, according to the report. The Warren Truck plant in Michigan would be converted from building the body-on-frame Ram 1500 to build the upcoming unibody Jeep Grand Wagoneer. The three-row Grand Wagoneer would share its underpinnings with the next-generation two-row Grand Cherokee. That would enable the Warren Truck plant to build additional Grand Cherokee models to complement the Jefferson North Assembly Plant in Detroit if demand increases. Ram 2500 and 3500 Heavy Duty production would remain at FCA‘s Satillo, Mexico, plant, while production of the Dodge Viper would remain at the Connor Avenue Assembly plant in Detroit. Production sites for future models including the Chrysler 100 sedan, replacement for the Jeep Compass and Patriot, and upcoming Chrysler crossovers haven’t been revealed. The automaker is also said to pay UAW members $3,000 bonuses if they ratify the new contract, which is expected to be voted on next week, Bloomberg reports. Additionally, UAW members reportedly will receive up to a $1 per hour raise. Tier 1 workers could see nearly $30 per hour wages after a two-step wage increase, while Tier 2 workers could be as high as $25 per hour after eight years on the job. Currently, Tier 1 workers make around $28 per hour, while Tier 2 workers make as high as $19.28 per hour.

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