Sunday, January 14, 2018

Fiat Chrysler to Invest $1 Billion, Pay Bonus After Tax Cut

Fiat Chrysler Automobiles NV is investing $1 billion in a Michigan truck factory and paying worker bonuses in the wake of a U.S. tax cut, gestures that could come in handy amid major policy matters being sorted out in Washington. The Italian-American automaker will share the spoils of a lower corporate tax rate by sending $2,000 checks to about 60,000 U.S. workers. Fiat Chrysler also will spend more than $1 billion and add 2,500 jobs at a factory near Detroit to produce heavy-duty Ram pickups that the company has been making in Mexico. The moves may prove useful to Fiat Chrysler's cause. Threats by Donald Trump to withdraw the U.S. from the North American Free Trade Agreement or dramatically rework the deal have spurred warnings from the auto industry of major harm. The president also has said he'll cut carmakers a break on fuel economy standards his administration is reviewing and explicitly asked them to return the favor by hiring more workers.

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"At least making Trump's tax plan look like it's rewarding workers very quickly should bode well with the administration," Dave Sullivan, an analyst at AutoPacific Inc., said by phone. "Part of it also is showing the administration how many workers they have here in the U.S." and signaling the company will "pump that money right into the economy."

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Consolidating Ram production in Michigan will help protect Fiat Chrysler against possible disruptions to Nafta. Trump reiterated a threat to pull out of the trade accord on Thursday, a day after Canadian officials said they viewed the odds of withdrawal as rising.

The investment "is a hedge by FCA against the increasing likelihood that Nafta will be dropped or renegotiated to favor manufacturing in the U.S.," Erik Gordon, a professor at the University of Michigan's Ross School of Business, said in an email. "It's the best news for Michigan auto workers in a long time."

#1 | Posted by Gal_Tuesday at 2018-01-13 08:48 PM

Auto jobs are good jobs. This is great to see.

#2 | Posted by BruceBanner at 2018-01-13 10:05 PM

Yeah whatever...

#3 | Posted by lfthndthrds at 2018-01-13 10:33 PM

#3

Like most of the Left, has no use for good economic news from January 20, 2017 until January 19, 2021 at the earliest.

#4 | Posted by Rightocenter at 2018-01-14 10:03 PM

As most of the Right had for the Obama years. You are surprised?

#5 | Posted by REDIAL at 2018-01-14 10:15 PM

I would say a bit of skepticism is justified after the news from Carrier, Wal-Mart, AT&T, etc, turned out not to be quite as spectacular as initially touted.

#6 | Posted by TFDNihilist at 2018-01-15 06:29 AM

They need invest the $1 billion in designing better vehicles.

#7 | Posted by Pirate at 2018-01-15 10:55 AM

And nancy says that is just crumbs.

#8 | Posted by Sniper at 2018-01-15 10:57 AM

And nancy says that is just crumbs.

#8 | POSTED BY SNIPER AT 2018-01-15 10:57 AM | FLAG: A thousand [or two] dollars would be just crumbs to a multi millionaire elitist like her.

So how rich is Nancy Pelosi? According to the Center for Responsive Politics, the San Francisco democrat is the ninth wealthiest member of Congress and has a colossal net worth of $196,299,990.Dec 29, 2011
Nancy Pelosi Vacation Proves She Is Not a Part of the 99%.
www.newsmax.com

#9 | Posted by MSgt at 2018-01-15 11:10 AM

But the war against Detroit by the Confederate South is still on. The South that loves Republicans, which means they hate liberals, labor unions, pensions and other benefits. More than Japan could ever hope for in Japan. Labor arbitrage.

#10 | Posted by bayviking at 2018-01-15 11:25 AM

As most of the Right had for the Obama years. You are surprised?

Not surprised in the least, but I think the Right was a little more embracing of good economic news during the Obama administration (while still finding fault in nearly everything he did) than the Left has been over the past 12 months and probably will be throughout Trump's Presidency.

#11 | Posted by Rightocenter at 2018-01-15 11:35 AM

"...than the Left has been over the past 12 months..." - #11 | Posted by Rightocenter at 2018-01-15 11:35 AM

I think the economy over the past 12 months has been great.

Thank you, President Obama.

#12 | Posted by Hans at 2018-01-15 11:59 AM

People (even liberals) invest in what they have confidence in. Investors began losing confidence in Bush's economy because he kept spending what he didn't have and they had little confidence in President Obama's economy because he kept telling them that he wanted to take from the productive and give it to the non-productive. Obama thought he could tax his way to prosperity. Under President Trump investors are actually being given opportunity to invest and see a real return.

#13 | Posted by bogey1355 at 2018-01-15 04:43 PM

Under President Trump investors are actually being given opportunity to invest and see a real return.
#13 | POSTED BY BOGEY1355

Under Obama, corporations experienced record profits. What more opportunity do they need?

#14 | Posted by TFDNihilist at 2018-01-16 07:24 AM

#3
Like most of the Left, has no use for good economic news from January 20, 2017 until January 19, 2021 at the earliest.

#4 | POSTED BY RIGHTOCENTER

We just spent trillions to create 2,500 jobs?

How is that good economic news?

#15 | Posted by Sycophant at 2018-01-16 09:44 AM

#15 The Obama stimulus? And those were short term jobs. You are right, how was that good economic news?

#16 | Posted by fishpaw at 2018-01-16 03:46 PM

"You are right, how was that good economic news?" - #16 | Posted by fishpaw at 2018-01-16 03:46 PM

Final tally: Obama created 11.3 million jobs
You're welcome.

#17 | Posted by Hans at 2018-01-16 03:51 PM

#17 www.aei.org

No, you're welcome.

#18 | Posted by fishpaw at 2018-01-16 04:14 PM

Nancy Pelosi Vacation Proves She Is Not a Part of the 99%.
www.newsmax.com

#9 | Posted by MSgt

Since she is so rich then I guess she is one of them "Stable Geniuses", too!

So you better listen to your betters. As they know better than you.

Maybe if you are lucky she will tinkle down on you someday.

#19 | Posted by donnerboy at 2018-01-16 04:33 PM

#17 www.aei.org

No, you're welcome.

#18 | Posted by fishpaw

From your "article":

To the extent that people hold their wealth in government securities rather than in a form that can be used to finance private investment, the increased debt tends to reduce the stock of productive private capital. In the long run, each dollar of additional debt crowds out about a third of a dollar's worth of private domestic capital, CBO estimates

And I just want to point out that we just went another 1.5 trillion more into debt for the 1%.

YOU are welcome.

#20 | Posted by donnerboy at 2018-01-16 04:39 PM

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