Fiat Chrysler CEO: Moving Ram Production to Mexico Was a Mistake

WARREN, MI- SEPTEMBER 12: The all new 2009 Dodge Ram comes off the assembly line at the Warren Truck Assembly Plant September 12, 2008 in Warren, Michigan. Chrysler LLC held an event today at the plant to celebrate the manufacturing launch of the new truck. (Photo by Bill Pugliano/Getty Images)
Bill Pugliano/Getty Images

Moving production of the Ram pickup truck to Mexico was a mistake, Fiat Chrysler’s chief executive officer, Sergio Marchionne, said Tuesday.

In answer to a question from CNBC, Marchionne said:

The heavy-duty truck, at least in Chrysler’s case, was moved to Mexico in 2008. Ninety percent plus of what gets produced out of Mexico gets sold in the United States. I think this notion of making a car which has got nearly 100 percent utilization in the United States is a bit bizarre. I think it should have never been moved.

Last week, Fiat Chrysler announced that it was moving production of the Ram to Michigan, which it says will create thousands of jobs.

“Repatriation of the heavy-duty Ram was owed. We had to correct the mistake of 2008,” Marchionne said.

The Trump administration’s pro-business stance and the recently enacted tax cuts played an important role in the car company’s decision, stated Marchionne.

“We are working in an environment which is a lot more beneficial, that’s much more pro-business than it’s been in a long time. Tax reform is going to compensate some of the cost differential in building the car here, as opposed to building it in Mexico,” Marchionne said.

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