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FCA shifts Ram Heavy Duty trucks from Mexico to U.S., creating 2,500 jobs

DETROIT — Fiat Chrysler Automobiles said on Thursday it will shift production of Ram Heavy Duty pickup trucks from Mexico to Michigan in 2020, a move that lowers the risk to the automaker's profit should President Donald Trump pull the United States out of the North American Free Trade Agreement. Fiat Chrysler said it would create 2,500 jobs at a factory in Warren, Michigan, near Detroit, where the Ram 1500 is currently built, and FCA will invest $1 billion in the facility. The Mexican plant will be "repurposed to produce future commercial vehicles" for sale global markets. Mexico has free trade agreements with numerous countries. Fiat Chrysler Chief Executive Sergio Marchionne a year ago raised the possibility that the automaker would move production of its heavy-duty pickups to the United States, saying U.S. tax and trade policy would influence the decision.If the United States exits NAFTA, it could mean that automakers would pay a 25 percent duty on pickup trucks assembled in Mexico and shipped to the United States. About 90 percent of the Ram pickups made at Fiat Chrysler's Saltillo plant in Mexico are sold in the United States or Canada, company officials said. Negotiators for the United States, Mexico and Canada are scheduled to meet later this month for another round of talks on revising NAFTA. Canadian government officials earlier this week said they are convinced that Trump intends to announce his intention to quit the agreement. Trump has threatened to force the rollback of NAFTA, which enables the free flow of goods made in the United States, Canada and Mexico across the borders of those countries. He also has criticized automakers for moving jobs and investment in new manufacturing facilities to Mexico and prodded them to add more auto production in the United States. View 31 Photos On Wednesday, Toyota and Mazda announced they would build a new $1.6 billion auto assembly plant in Alabama, drawing praise from Trump. Vice President Mike Pence praised Fiat Chrysler's announcement. "Manufacturing is back. Great announcement. Proof that this admin's AMERICA FIRST policies are WORKING!" Pence said in a Twitter posting. Chrysler raised its output in Mexico by 39 percent in 2017 to 639,000 vehicles, according to Mexican government data. That made Fiat Chrysler the third-largest producer of vehicles in Mexico in 2017, after Nissan and General Motors.

2021 Ram 1500 TRX debuts as a Hellcat-powered, desert-running Raptor killer

The 2021 Ram 1500 TRX is here, and Ford’s free ride is over with the F-150 Raptor. Ford has had it good for a long time without any significant competition. Neither GM nor FCA entered the off-road full-size truck market with an offering like the Raptor. Chevy makes the Colorado ZR2, but itÂ’s a midsize truck. With the introduction of the Ram TRX, Ford finally has a proper competitor. Timing of the Ram TRXÂ’s release happens to fall in an in-between time for the Raptor, too. The F-150 is all new for 2021, but Ford hasnÂ’t released any details on the Raptor variant — though, weÂ’ve heard that the wait wonÂ’t be long. Regardless, Ford had better be aiming for the moon if it aims to best the TRX, because RamÂ’s new off-road truck is one hell of a moonshot. There is a lot to take in here, so weÂ’ve divided the chunks of information into a few digestible sections. LetÂ’s start with the underneath bits, which are arguably the most important of all when desert running and jumping is taken into consideration. Ram TRX frame and suspension Ram boasts that the frame underneath the TRX is 75 percent different from a regular Ram 1500. It uses thicker high-strength steel with low torsion attributes for stability and durability. The side rails are fully boxed, and sections of the frame are hydroformed. Ram claims its truck holds up to jumping and high impact events better than the competition, which in this case is simply code for the outgoing Raptor. ItÂ’s designed to handle rough terrain at 100 mph-plus. Compared to a Ram 1500 with the 5.7-liter V8, itÂ’s 600 pounds heavier. Ram is not messing around here. Damping is taken care of by Bilstein Black Hawk e2 adaptive shocks, aided by nitrogen-charged remote reservoirs to ensure maximum durability. The shocks will continuously adjust damping force to best handle the terrain, but you can control them via a number of modes, too. Ram says that in addition to the off-road capability, the shocks make for a smoother ride on pavement. The internals of the shocks feature a “Jounce Cut Off” that has three zones for progressive bottom-out control. You know, for when you take that jump at speed on your way to the office. 2021 Ram 1500 TRX chassis with brakes View 7 Photos Just like the other Ram 1500s, this one uses a five-link coil suspension design for the rear. However, the design is unique to the TRX with different hard points to allow room for a Dana 60 rear axle.

Trucks, SUVs — and Camry — shine in mixed U.S. January vehicle sales

DETROIT — Automakers posted mixed U.S. new vehicle sales data for January, with American consumers continuing to abandon passenger cars for the larger pickup trucks, SUVs and crossover models that manufacturers also love because they are far more profitable. Total industry auto sales for the month rose 1 percent versus January 2016. According to Autodata Corp, which tracks industry sales, the seasonally adjusted annualized rate (SAAR) of U.S. car and light truck sales in January fell to 17.12 million units from 17.44 million a year earlier. Analysts polled by Reuters had expected a January SAAR of 17.2 million units. U.S. auto industry sales fell 2 percent in 2017 to 17.23 million vehicles after hitting a record high in 2016 and are expected to drop further in 2018 despite a solid economy. Interest rates are rising and around 4 million late-model used cars will return to dealer lots this year to compete with more expensive new ones. Automakers have used consumer discounts to boost sales, a growing concern for observers who say this undermines resale values and profits. Discounts declined in January, but remained above 10 percent of manufacturers' recommended prices. ""I think the industry has accepted that (sales) volumes will fall somewhat in 2018 ... and I don't think the industry is going to go over the cliff with insane incentives," Mike Jackson, chief executive officer of AutoNation Inc, told Reuters after his company, the largest U.S. auto retail chain, posted a higher quarterly net profit. Mark Wakefield, head of the North American automotive practice for consultancy AlixPartners, had a gloomier perspective. The industry's less-than-stellar sales performance for January showed "we are now past the peak," he said. "Automakers are now selling the deal instead of the vehicle," he said. "That's a tough spot to be in because that treadmill is hard to get off once you're on it." General Motors January sales rose 1.3 percent, driven by a 16 percent rise in fleet sales. Sales to consumers fell 2.4 percent. GM posted strong gains for models such as the Silverado pickup truck and Equinox crossover model, while its passenger cars continued to struggle. Ford The Blue Oval posted a 6.6 percent sales decline for January, with retail sales down 4.3 percent. Sales of Ford's F-Series pickup trucks - America's best-selling vehicle brand for decades — rose 1.6 percent. Passenger cars were down more than 23 percent.