Plans about constructing an assembly plant are under consideration. According to reports, Fiat-Chrysler Automobiles or FCA is considering opening a new factory in Detroit. US media reports that production of Jeep SUVs would begin in 2020 in the plant which will give employment to almost 400 people. However the news has not been confirmed by the US-Italian manufacturer of cars. The carmaker had earlier stated that it would like to increase sports utility vehicle and truck production because of high sale in America. If the plans come through, it would be a rare case of domestic expansion done by an American car firm in an industry during a time when rivals and competitors are decreasing their production.
The reports also say that FCA’s intention is to reopen one such engine plant that has not been used since 2012 and has been kept in good condition to be used as a plant for vehicle assembling. Fiat-Chrysler’s Jeep line-up has led to an overall rise in the company’s sales in the United States by 8% in 2018. While sales reached their peak 2 years back in 2016, the car making industry has since seen relatively lower sales. Fiat-Chrysler’s profits come in spite of such flat sales. The previous month saw General Motors announce its plans of halting production at 5 North American factories, 4 out of which were located in the US. This brought to light the falling and slackening demand of cars in the market. Several politicians have harshly criticized this move as it could result in over 14,000 people losing their jobs and could also hit the Trump administration hard, who has prioritized car manufacturing after taking office. The step taken by GM could also be a part of a greater and broader overhaul of its business.
Other companies that have announced their plans of restructuring include Ford. The car company has not however mentioned anything specifically about job cuts.