For the past few years, FCA has been the automotive group that we’ve looked at as missing out on the profits and the success that have been enjoyed by some of the other automakers in the industry. As a direct competitor in the US with Ford and GM, FCA is looked at as the third of the Detroit Big Three to make it one that has to be able to compete. When you look at what FCA offers for the driving experience, you might think they are having troubles financially, and that was true until the past couple of years.
With a variety of frugal decisions by the leaders of FCA where we saw models such as the Dodge Dart and Chrysler 200 deleted from the models offered for the drive, we see this is a brand group that put their focus where more profits are present, which is the SUV and truck segments of the market. Because of this, the FCA team is able to offer a share of profits to qualifying employees, which they haven’t been able to do in the past, which shows the success and what this automotive group has been able to achieve.
The Profits and the Movement
Profit sharing payments in the amount of $5,500 will be sent out on February 16 to nearly 40,000 employees while an additional $2,000 payment will be sent out in the second quarter of this year with 60,000 employees eligible for this smaller payment. The smaller payment was announced on January 11 as a result of the tax reform that took place and the $5,500 payment was made possible due to the adjusted EBIT performance for the North American region of the FCA team to make it possible for UAW employees at FCA plants to share in the success of the company.
In addition to these payments that will take place, FCA has moved the production of the Jeep Cherokee from Toledo, OH to Belvidere, IL which required a $350 million plant renovation and created 300 new jobs at this plant. This created space in Toledo for the team to begin to build the Jeep Wrangler JL pickup truck and make it possible for FCA to invest another $700 million into retooling this plant to make it possible for this new model to be built alongside the most recently offered Jeep Wrangler JL SUV.
The new Ram 1500 that showed itself at the 2018 Detroit Auto Show will also be moved to the Sterling Heights facility which has received a $1.5 billion renovation. This move from the Warren Assembly plant leaves room for the new Jeep Wagoneer and Grand Wagoneer to be built alongside the Ram Heavy Duty pickup which has returned to the US for production. This move will be completed before 2020 to give us the new Jeep luxury SUVs at the top of the lineup as early as the 2019 model year. These are impressive moves for a company that has recently become profitable once again and has a bright future in the markets of the automotive industry that we purchase more than others right now.
Looking for an impressive model? Opt for the Jeep Grand Cherokee or the Jeep Wrangler today.