Fiat Chrysler ups the ante as carmakers respond to Trump threats

Detroit

FIAT Chrysler Automobiles said on Sunday that it will invest US$1 billion to modernise two plants in the US Midwest and create 2,000 jobs, upping the ante as carmakers respond to threats from President-elect Donald Trump to slap new taxes on imported vehicles.

FCA's announcement that it would retool factories in Ohio and Michigan to build new Jeep sport utility vehicles, including a pickup truck, and potentially move production of a Ram heavy-duty pickup truck to Michigan from Mexico, also highlighted the vehicle industry's keen interest in getting relief from tough fuel economy rules enacted by the outgoing Obama administration.

Many carmakers plan to use the annual North American International Auto Show in Detroit, which started on Saturday, to tout investments in the United States and a commitment to US employment against the backdrop of Mr Trump's criticism of…