Earlier this year, Fiat Chrysler Automobiles announced that it would be moving production of the next-generation Ram HD trucks from Saltillo, Mexico to the Warren Truck Plant in Michigan. This was due to the U.S. Government threatening steep tariffs on Mexican-made vehicles. Saltillo would continue producing global commercial vehicles. But with a new Free Trade Agreement between the U.S., Canada, and Mexico; FCA is having second thoughts about moving production.
CEO Mike Manley told Reuters that he wants Ram Trucks to move out of third place with truck sales.
“We need to get ourselves into second” place. Frankly, I don’t care which of the two I take share from,” he said.
Thus, he is reconsidering the decision made by his predecessor and keep some Ram HD production in Mexico.
“With a combination of Warren and Mexico building what we call the classic truck, we have enough production to increase output next year if it’s required. In my opinion it will be required. We are gaining share. Obviously I am looking for that to continue, but it’s an incredibly competitive segment,” said Manley.
The new agreement between the two countries calls for no import cap, so long as the vehicle meets a certain amount of content from various countries.