FCA, the U.S. arm of automaker Fiat-Chrysler, announced on Sunday that it would invest a total $1 billion in plants in Michigan and Ohio, which will add 2000 new jobs in the United States.
The announcement, in what the company said was the second phase of a plan it first made public a year ago, came days after Ford Motor Company decided to scrap a plan to build a facility in Mexico, instead opting to invest in a plant in Michigan.
Ford's CEO cited demand, rather than the policies of President-elect Donald Trump, who has vowed to impose a "border tax" on companies that send jobs abroad.
"Consistent and combined with previously announced investments, FCA US is further demonstrating its commitment to strengthening its U.S. manufacturing base, and aligning U.S. capacity to extend the Jeep product lineup," FCA said.
In a statement, FCA said it would retool and modernize its Warren Truck Assembly Plant to produce a new Jeep and Grand Wagoneers, while a facility in Toledo would build a new Jeep pickup truck. These plans will be in place by 2020, the company said.
The move "is a continuation of the efforts already underway to increase production capacity in the U.S.on trucks and SUVs to match demand," the company said, adding that it would help solidify the U.S. as "a global manufacturing hub" for its flagship brands.
However, Fiat indicated it would still continue to produce at least one line, its Ram heavy duty truck, in Mexico.
"The added benefit of the investment in Warren is that it will enable the plant to produce the Ram heavy duty truck, which is currently produced in Mexico," FCA said.