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Chrysler moving production of trucks from Mexico to Detroit

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Is this a win for Donald Trump?

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Trumptonium
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Chrysler moving production of trucks from Mexico to Detroit

Postby Trumptonium » Fri Jan 12, 2018 6:38 am

In what is possibly the first economic effect of Trump's tax cut legislation for corporations, Fiat-Chrysler Group has officially announced that they will be moving the production of the RAM trucks (formerly Dodge Ram series) from Mexico to Detroit.

The news follows an earlier announcement yesterday that Toyota and Mazda will be investing $1.6 billion to begin a joint venture in constructing an auto assembly plant in Alabama, but have not related their decision to the tax cut. Plans were announced after the election but before any talks of a tax cut.

The move will be accompanied by a $1.4 billion investment and 2500 extra jobs in Detroit. The Warren Assembly Plant will begin production of heavy-duty trucks from 2020. The Mexican plant will be 'repurposed', although it is unknown for what future commercial production. Staff have been notified of job losses in Mexico, but it is understood that there will likely be a new light duty truck production for a new model, yet unnamed and unseen.

FCA said it also would make a special bonus payment of $2,000 to about 60,000 FCA hourly and salaried employees in the United States totaling about $120 million. The CEO said this is because "the new [tax cut] bill allows us to share our savings with you [employees]"

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 heavy-duty pickups made at Fiat Chrysler’s Saltillo plant in Mexico are sold in the United States or Canada, company officials said.

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.

The Italian-American manufacturer is basking in high share gains as it finishes the second week of 2018 with a 21% growth.
Image

Other companies directly citing the new tax cut bill in bonuses:
Bank of America will give 145 000 non-senior level employees in the US a $1000 bonus
Wells Fargo and Bancorp will be introducing a $15-an-hour minimum wage and Wells Fargo will be donating $400 million to various charities in 2018 to "share wealth". Both banks will be giving all employees a $1000 bonus
Comcast will be giving all of its 100 000 frontline staff a $1000 bonus and announced a $50 billion investment plan over the next 5 years
AT&T has committed a $1 billion charitable giving plan for 2018 and will issue all 200 000 employees a $1000 bonus
Walmart, the largest employer in the world with 2.3 million employees, has announced they will be raising maternity leave to 10 weeks at 100% of pay, and will be giving all of their US-based employees a tiered bonus up to $1000 based on length of service, along with a pension contribution boost. They have also raised minimum wages to $11 an hour, and committed to ensuring no American Walmart employee claims income-based welfare by 2020.

Boeing's websites cites the new law as the reason for their planned $300 million charitable giving in 2018. " Chairman, President and Chief Executive Officer Dennis Muilenburg praised the tax bill passed by Congress and about to be signed into law as a critical driver of business, economic growth and innovation for the United States and for Boeing.

"On behalf of all of our stakeholders, we applaud and thank Congress and the administration for their leadership in seizing this opportunity to unleash economic energy in the United States," said Muilenburg. "It's the single-most important thing we can do to drive innovation, support quality jobs and accelerate capital investment in our country.""





With the slew of companies announcing several positive changes to their governance, employee compensation/standards or community relations, it seems like the usual fears by anti-business Democrats that companies will take all the tax savings for themselves and pay them out in dividends have been utterly unfounded. Not a single company has yet announced a dividend boost, but more than $100 billion has been announced in investments.

It seems that the tax cut will, at current rate of news items, emit its intended purpose of enabling growth of the economy and passing down savings from corporate treasuries to employees and communities.

Are you now more or less positive about the US economy in the coming years? How do you think this will impact inequality, if at all? Most importantly, do you attribute this as a win for the Trump administration?
Last edited by Trumptonium on Fri Jan 12, 2018 6:50 am, edited 1 time in total.
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Postby Thermodolia » Fri Jan 12, 2018 6:41 am

I think it’s a combination of the tax cut and the fact that Trump is probably going to pull out of NAFTA. Because if he does pull out Mexico will as well. So many companies are probably seeing the writing on the wall and getting the hell out of dodge
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Postby Trumptonium » Fri Jan 12, 2018 6:48 am

It seems that, love him or hate him, Trump for now is one of the most successful Presidents.

He hasn't invaded anybody yet or sent the military to foreign endavours, which a year after coming to power puts him rather at the most peaceful end of the Presidential list. It took Bush, Clinton, HW Bush, Reagan, Nixon, LBJ, Kennedy less than a year to invade somebody. He's just slightly out for Obama by two months, Carter by three and Eisenhower/Truman by 5 years each.

He's even managed to somehow get North Korea to talk to the South without fear and the South got them to participate in the Olympics.

Economically speaking, he's by far the most successful President the US had since the war. There hasn't been a boom like this for a long time. Of course it won't be sustained, but for now...
Last edited by Trumptonium on Fri Jan 12, 2018 6:49 am, edited 1 time in total.
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Postby Thermodolia » Fri Jan 12, 2018 6:55 am

Trumptonium wrote:It seems that, love him or hate him, Trump for now is one of the most successful Presidents.

He hasn't invaded anybody yet or sent the military to foreign endavours, which a year after coming to power puts him rather at the most peaceful end of the Presidential list. It took Bush, Clinton, HW Bush, Reagan, Nixon, LBJ, Kennedy less than a year to invade somebody. He's just slightly out for Obama by two months, Carter by three and Eisenhower/Truman by 5 years each.

He's even managed to somehow get North Korea to talk to the South without fear and the South got them to participate in the Olympics.

Economically speaking, he's by far the most successful President the US had since the war. There hasn't been a boom like this for a long time. Of course it won't be sustained, but for now...

Generally though the first year or two of economic growth or loss is because of the previous administration. Now could Trump have built off from that yes could
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Postby The Derpy Democratic Republic Of Herp » Fri Jan 12, 2018 7:09 am

To use the president's own words, Detroit is still going to be "a shithole".

BOA, AT&T, Comcast, Walmart, are still horrible places to work.

Trumptonium wrote:In what is possibly the first economic effect of Trump's tax cut legislation for corporations, Fiat-Chrysler Group has officially announced that they will be moving the production of the RAM trucks (formerly Dodge Ram series) from Mexico to Detroit.

The news follows an earlier announcement yesterday that Toyota and Mazda will be investing $1.6 billion to begin a joint venture in constructing an auto assembly plant in Alabama, but have not related their decision to the tax cut. Plans were announced after the election but before any talks of a tax cut.


The move will be accompanied by a $1.4 billion investment and 2500 extra jobs in Detroit. The Warren Assembly Plant will begin production of heavy-duty trucks from 2020. The Mexican plant will be 'repurposed', although it is unknown for what future commercial production. Staff have been notified of job losses in Mexico, but it is understood that there will likely be a new light duty truck production for a new model, yet unnamed and unseen.


So, it wasn't beacuse of the tax cut at all. If the plans where that far along, they would have done it even of Jeb bush suddenly took all the states by storm.
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Postby Thermodolia » Fri Jan 12, 2018 7:17 am

The Derpy Democratic Republic Of Herp wrote:To use the president's own words, Detroit is still going to be "a shithole".

BOA, AT&T, Comcast, Walmart, are still horrible places to work.

Um only Walmart is. AT&T and Comcast are both great places to work, maybe not to buy from but definitely work for.
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Postby Ohioan Territory » Fri Jan 12, 2018 7:21 am

The Derpy Democratic Republic Of Herp wrote:So, it wasn't beacuse of the tax cut at all. If the plans where that far along, they would have done it even of Jeb bush suddenly took all the states by storm.

Chrysler explicitly stated that tax legislation would influence their decision to relocate manufacturing to the United States.
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Postby Thermodolia » Fri Jan 12, 2018 7:23 am

The Derpy Democratic Republic Of Herp wrote:To use the president's own words, Detroit is still going to be "a shithole".

BOA, AT&T, Comcast, Walmart, are still horrible places to work.

Trumptonium wrote:In what is possibly the first economic effect of Trump's tax cut legislation for corporations, Fiat-Chrysler Group has officially announced that they will be moving the production of the RAM trucks (formerly Dodge Ram series) from Mexico to Detroit.

The news follows an earlier announcement yesterday that Toyota and Mazda will be investing $1.6 billion to begin a joint venture in constructing an auto assembly plant in Alabama, but have not related their decision to the tax cut. Plans were announced after the election but before any talks of a tax cut.


The move will be accompanied by a $1.4 billion investment and 2500 extra jobs in Detroit. The Warren Assembly Plant will begin production of heavy-duty trucks from 2020. The Mexican plant will be 'repurposed', although it is unknown for what future commercial production. Staff have been notified of job losses in Mexico, but it is understood that there will likely be a new light duty truck production for a new model, yet unnamed and unseen.


So, it wasn't beacuse of the tax cut at all. If the plans where that far along, they would have done it even of Jeb bush suddenly took all the states by storm.

Herp the bolded is talking about Toyota and Mazda not Fiat-Chrysler. The comma after “Alabama” is the key.
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Postby Thermodolia » Fri Jan 12, 2018 7:25 am

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Postby Grand Britannia » Fri Jan 12, 2018 7:28 am

AT&T is pretty nice to work at from what I've seen.

Dunno what the fuck this has to do with an automobile company moving to Detroit but fuck context I suppose.
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Postby The Derpy Democratic Republic Of Herp » Fri Jan 12, 2018 7:30 am

Ohioan Territory wrote:
The Derpy Democratic Republic Of Herp wrote:So, it wasn't beacuse of the tax cut at all. If the plans where that far along, they would have done it even of Jeb bush suddenly took all the states by storm.

Chrysler explicitly stated that tax legislation would influence their decision to relocate manufacturing to the United States.

Trumptonium wrote:FCA said it also would make a special bonus payment of $2,000 to about 60,000 FCA hourly and salaried employees in the United States totaling about $120 million. The CEO said this is because "the new [tax cut] bill allows us to share our savings with you [employees]"



Only the "special bonus payment" was attached to the tax cut.

Thermodolia wrote:
The Derpy Democratic Republic Of Herp wrote:To use the president's own words, Detroit is still going to be "a shithole".

BOA, AT&T, Comcast, Walmart, are still horrible places to work.



So, it wasn't beacuse of the tax cut at all. If the plans where that far along, they would have done it even of Jeb bush suddenly took all the states by storm.

Herp the bolded is talking about Toyota and Mazda not Fiat-Chrysler. The comma after “Alabama” is the key.


Ok then.

That's still 2/3 companies that didn't do anything related to the tax cut. And like the OP said, only the special bonus payment was beacuse of the tax cut.

Thermodolia wrote:
The Derpy Democratic Republic Of Herp wrote:"The expectations and the qualifications of a commission pay that they put on us are next to impossible. The way they have the commission set up almost encourages bad behavior on the reps' end. Some reps will do things like add services to customers' accounts without their permission, or flat out just not disconnect the account so that they can make commission pay.

If we don't save the company at certain, very high amount of money, we get NO commission pay, even if our percentages are phenomenal. This makes it even harder for honest reps like myself when these customers call back extremely irate (which I can understand—I'd be upset too!). They teach us in training not to do this, but thee isn't much accountability. We don't have a very large quality auditing team compared to the number of employees in the call center, so if they don't happen to randomly pull that call, the rep gets away with it."

Sales reps aren’t the entire workforce of Comcast dude. Oh and newsflash sales reps everywhere have sucky jobs


Read the rest of the article, there phone workers also have shit jobs.
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Postby Thermodolia » Fri Jan 12, 2018 7:36 am

The Derpy Democratic Republic Of Herp wrote:
Thermodolia wrote:Sales reps aren’t the entire workforce of Comcast dude. Oh and newsflash sales reps everywhere have sucky jobs


Read the rest of the article, there phone workers also have shit jobs.

Sales reps and call center guys both have shity work places everywhere. This isn’t just a Comcast thing. And Comcast employs more people than just the call center guys and it still doesn’t prove that AT&T and Bank of America are bad places to work
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Postby Grand Britannia » Fri Jan 12, 2018 7:38 am

Thermodolia wrote:
The Derpy Democratic Republic Of Herp wrote:
Read the rest of the article, there phone workers also have shit jobs.

Sales reps and call center guys both have shity work places everywhere. This isn’t just a Comcast thing. And Comcast employs more people than just the call center guys and it still doesn’t prove that AT&T and Bank of America are bad places to work


Call centers are hell regardless of where you go.

Either that or they get outsourced overseas which is worse, I can't fucking understand whoever answers me the few times I've called Microsoft.
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Postby Ohioan Territory » Fri Jan 12, 2018 7:39 am

The Derpy Democratic Republic Of Herp wrote:
Ohioan Territory wrote:Chrysler explicitly stated that tax legislation would influence their decision to relocate manufacturing to the United States.

Trumptonium wrote:FCA said it also would make a special bonus payment of $2,000 to about 60,000 FCA hourly and salaried employees in the United States totaling about $120 million. The CEO said this is because "the new [tax cut] bill allows us to share our savings with you [employees]"



Only the "special bonus payment" was attached to the tax cut.

About a year ago, a Chrysler representative stated that tax and trade policy would influence Chrysler's decision to move manufacturing to the US. Trump tax cuts and the possibility of leaving NAFTA and Chrysler decides to move a portion of manufacturing back to the US. And you're not attributing this to Trump?

There certainly wouldn't have been tax cuts or the possibility of leaving NAFTA if Clinton became president, and Chrysler probably wouldn't have moved manufacturing back to the US.

I don't understand your gripe here. Manufacturing moving back to the United States is a good thing. New jobs and more money for people is a good thing. Trump promised American voters he'd get jobs back to the United States, he's done what he can to do this, and it has worked.
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Postby Grand Britannia » Fri Jan 12, 2018 7:41 am

Ohioan Territory wrote:
The Derpy Democratic Republic Of Herp wrote:

Only the "special bonus payment" was attached to the tax cut.

About a year ago, a Chrysler representative stated that tax and trade policy would influence Chrysler's decision to move manufacturing to the US. Trump tax cuts and the possibility of leaving NAFTA and Chrysler decides to move a portion of manufacturing back to the US. And you're not attributing this to Trump?

There certainly wouldn't have been tax cuts or the possibility of leaving NAFTA if Clinton became president, and Chrysler probably wouldn't have moved manufacturing back to the US.

I don't understand your gripe here. Manufacturing moving back to the United States is a good thing. New jobs and more money for people is a good thing. Trump promised American voters he'd get jobs back to the United States, he's done what he can to do this, and it has worked.

Trump did it and the jobs arent being moved to the benefit of corporations and third world countries.
Therefore bad.
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Postby Esternial » Fri Jan 12, 2018 7:41 am

Mostly seeing big companies handing out bonuses here. Must be nice if you work for such a big company.

As I see it, a more fair tax bill could have helped everyone. This one just introduces a lottery for whomever's lucky enough to work for a company willing/able to participate in "trickle-down economics".

So yes, more inequality, obviously.

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Postby Trumptonium » Fri Jan 12, 2018 7:44 am

The Derpy Democratic Republic Of Herp wrote:Only the "special bonus payment" was attached to the tax cut.


This isn't correct.

. "It is only proper that our employees share in the savings generated by tax reform and that we openly acknowledge the resulting improvement in the U.S. business environment by investing in our industrial footprint accordingly."


The quote is merely what he said to his employees in a company-wide email, the above is what he told the media. He quite clearly attaches the decision to the tax reform, as do all the other companies I mentioned if you bother to click the links.

The only one that didn't was Toyota and Mazda, however, their decision was a result of plans that they openly acknowledged would not have occurred 'without the ongoing change in the political environment'

https://www.freep.com/story/money/cars/ ... 026517001/

Yet again, I repeat what I said in OP "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."
Last edited by Trumptonium on Fri Jan 12, 2018 7:46 am, edited 1 time in total.
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Postby Trumptonium » Fri Jan 12, 2018 7:49 am

Grand Britannia wrote:
Ohioan Territory wrote:About a year ago, a Chrysler representative stated that tax and trade policy would influence Chrysler's decision to move manufacturing to the US. Trump tax cuts and the possibility of leaving NAFTA and Chrysler decides to move a portion of manufacturing back to the US. And you're not attributing this to Trump?

There certainly wouldn't have been tax cuts or the possibility of leaving NAFTA if Clinton became president, and Chrysler probably wouldn't have moved manufacturing back to the US.

I don't understand your gripe here. Manufacturing moving back to the United States is a good thing. New jobs and more money for people is a good thing. Trump promised American voters he'd get jobs back to the United States, he's done what he can to do this, and it has worked.

Trump did it and the jobs arent being moved to the benefit of corporations and third world countries.
Therefore bad.


It does seem like some people can only see positive results between 2016 and 2024 as Trump's resignation.

Literally all of these companies have cited and praised the tax cut, most have raised wages, raised charitable donations, all have announced bonus payments and some have announced an expansion of US industrial production and employment. The new minimum wage in Wells Fargo is $30 000 a year and Walmart $22 440. That's not good enough, apparently.

The only way this can be seen as bad is if you are a hardline globalist who can only see wealth moving out of the West as a positive thing.
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Postby Thermodolia » Fri Jan 12, 2018 7:59 am

Grand Britannia wrote:
Ohioan Territory wrote:About a year ago, a Chrysler representative stated that tax and trade policy would influence Chrysler's decision to move manufacturing to the US. Trump tax cuts and the possibility of leaving NAFTA and Chrysler decides to move a portion of manufacturing back to the US. And you're not attributing this to Trump?

There certainly wouldn't have been tax cuts or the possibility of leaving NAFTA if Clinton became president, and Chrysler probably wouldn't have moved manufacturing back to the US.

I don't understand your gripe here. Manufacturing moving back to the United States is a good thing. New jobs and more money for people is a good thing. Trump promised American voters he'd get jobs back to the United States, he's done what he can to do this, and it has worked.

Trump did it and the jobs arent being moved to the benefit of corporations and third world countries.
Therefore bad.

No it’s because Trump is succeeding and not failing like they want him too
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Petrolheadia
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Postby Petrolheadia » Fri Jan 12, 2018 8:10 am

I like it. Two birds with one stone.

The cheap trucks, where the cost difference is important (Ram 1500, maybe 2500 and Dodge Dakota successor), will be made in cheap places, and the US economy will be benefitted by the manufacturing of bigger, more expensive trucks, where price differences owuld be less noticeable.

And turns out corporate managers are actual humans.

"Other companies directly citing the new tax cut bill in bonuses:
Bank of America will give 145 000 non-senior level employees in the US a $1000 bonus
Wells Fargo and Bancorp will be introducing a $15-an-hour minimum wage and Wells Fargo will be donating $400 million to various charities in 2018 to "share wealth". Both banks will be giving all employees a $1000 bonus
Comcast will be giving all of its 100 000 frontline staff a $1000 bonus and announced a $50 billion investment plan over the next 5 years
AT&T has committed a $1 billion charitable giving plan for 2018 and will issue all 200 000 employees a $1000 bonus
Walmart, the largest employer in the world with 2.3 million employees, has announced they will be raising maternity leave to 10 weeks at 100% of pay, and will be giving all of their US-based employees a tiered bonus up to $1000 based on length of service, along with a pension contribution boost. They have also raised minimum wages to $11 an hour, and committed to ensuring no American Walmart employee claims income-based welfare by 2020.

Boeing's websites cites the new law as the reason for their planned $300 million charitable giving in 2018. " Chairman, President and Chief Executive Officer Dennis Muilenburg praised the tax bill passed by Congress and about to be signed into law as a critical driver of business, economic growth and innovation for the United States and for Boeing"
Last edited by Petrolheadia on Fri Jan 12, 2018 8:13 am, edited 1 time in total.
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The Derpy Democratic Republic Of Herp
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Founded: Dec 18, 2013
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Postby The Derpy Democratic Republic Of Herp » Fri Jan 12, 2018 8:29 am

Thermodolia wrote:
The Derpy Democratic Republic Of Herp wrote:
Read the rest of the article, there phone workers also have shit jobs.

Sales reps and call center guys both have shity work places everywhere. This isn’t just a Comcast thing. And Comcast employs more people than just the call center guys and it still doesn’t prove that AT&T and Bank of America are bad places to work

There still employees of Comcast working shit, unhappy jobs by design.

Ohioan Territory wrote:
The Derpy Democratic Republic Of Herp wrote:

Only the "special bonus payment" was attached to the tax cut.

About a year ago, a Chrysler representative stated that tax and trade policy would influence Chrysler's decision to move manufacturing to the US. Trump tax cuts and the possibility of leaving NAFTA and Chrysler decides to move a portion of manufacturing back to the US. And you're not attributing this to Trump?

There certainly wouldn't have been tax cuts or the possibility of leaving NAFTA if Clinton became president, and Chrysler probably wouldn't have moved manufacturing back to the US.

I don't understand your gripe here. Manufacturing moving back to the United States is a good thing. New jobs and more money for people is a good thing. Trump promised American voters he'd get jobs back to the United States, he's done what he can to do this, and it has worked.



Only the bonus was explicitly said to be attributed to Trump. Mazda and Toyota did the move to the US regardless of the tax cut.

It's not a big gipe.

The Derpy Democratic Republic Of Herp wrote:To use the president's own words, Detroit is still going to be "a shithole".

BOA, AT&T, Comcast, Walmart, are still horrible places to work.


Yep, Detroit is still going to be a shit hole.

BOA and AT&T might not be that bad apparently. Walmart and Comcast (at least for sales reps and phone workers) are still bad places to work.

Grand Britannia wrote:
Ohioan Territory wrote:About a year ago, a Chrysler representative stated that tax and trade policy would influence Chrysler's decision to move manufacturing to the US. Trump tax cuts and the possibility of leaving NAFTA and Chrysler decides to move a portion of manufacturing back to the US. And you're not attributing this to Trump?

There certainly wouldn't have been tax cuts or the possibility of leaving NAFTA if Clinton became president, and Chrysler probably wouldn't have moved manufacturing back to the US.

I don't understand your gripe here. Manufacturing moving back to the United States is a good thing. New jobs and more money for people is a good thing. Trump promised American voters he'd get jobs back to the United States, he's done what he can to do this, and it has worked.

Trump did it and the jobs arent being moved to the benefit of corporations and third world countries.
Therefore bad.


Thank you for making an argument I never said or stated.

Thermodolia wrote:No it’s because Trump is succeeding and not failing like they want him too



See above.
Last edited by The Derpy Democratic Republic Of Herp on Fri Jan 12, 2018 8:30 am, edited 1 time in total.
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Grand Britannia
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Postby Grand Britannia » Fri Jan 12, 2018 8:31 am

I don't expect children to admit they broke the porcelain vase in the living room so this is obviously expected.
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The Derpy Democratic Republic Of Herp
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Postby The Derpy Democratic Republic Of Herp » Fri Jan 12, 2018 8:36 am

Trumptonium wrote:
The Derpy Democratic Republic Of Herp wrote:Only the "special bonus payment" was attached to the tax cut.


This isn't correct.

. "It is only proper that our employees share in the savings generated by tax reform and that we openly acknowledge the resulting improvement in the U.S. business environment by investing in our industrial footprint accordingly."


The quote is merely what he said to his employees in a company-wide email, the above is what he told the media. He quite clearly attaches the decision to the tax reform, as do all the other companies I mentioned if you bother to click the links.

The only one that didn't was Toyota and Mazda, however, their decision was a result of plans that they openly acknowledged would not have occurred 'without the ongoing change in the political environment'

https://www.freep.com/story/money/cars/ ... 026517001/

Yet again, I repeat what I said in OP "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."



Story you linked to didn't say anything about the supposed 'without the ongoing change in the political environment' quote.

"Thursday's announcement was the second major auto factory news in as many days. On Wednesday, Toyota and Mazda announced they would build a $1.6-billion, 4,000-worker plant in Alabama. "
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The Derpy Democratic Republic Of Herp
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Postby The Derpy Democratic Republic Of Herp » Fri Jan 12, 2018 8:37 am

Grand Britannia wrote:I don't expect children to admit they broke the porcelain vase in the living room so this is obviously expected.



I'm sorry, what?
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