FCA to Boost Output in U.S. but Move Some Production to Mexico

Fiat Chrysler Automobiles NV plans under its tentative labor pact with the United Auto Workers union to relocate two low-profit small-car programs to Mexico and hike output of hot-selling pickup trucks and crossover vehicles in the U.S., sources tell the Detroit Free Press.

FCA would invest $5.3 billion in the U.S. over the next four years to make the changes. CEO Sergio Marchionne tells Automotive News the scheme would help lock in UAW jobs in the U.S. by linking them to some of the American market's most popular and profitable models.

The Free Press says FCA proposes to move production of two cars the Chrysler 200 midsize sedan built in Sterling Heights, Mich., and the Dodge Dart small sedan made in Belvidere, Ill. to Toluca, Mexico. A new Jeep crossover to replace the Jeep Compass and Jeep Patriot small SUVs now assembled in Belvidere also would be made in Toluca, according to the report.

To offset those losses, Belvidere would add Jeep's best-selling model, the Cherokee SUV, and Sterling Heights would gain the hot-selling Ram 1500 pickup truck.

The Ram 1500 currently is assembled at FCA's Warren, Mich. truck plant. That facility would replace the Cherokee with Jeep's upcoming Grand Wagoneer SUV and perhaps the next-generation Grand Cherokee.

The loss of the Cherokee, now produced at FCA's big Jeep complex in Toledo, Ohio, would be remedied by converting that portion of the factory to make more Jeep Wrangler SUVs and an expected pickup truck variant.