Categories Consumer, Markets

Fiat comes to Detroit just as GM plans to leave

Fiat Chrysler Automobiles NV (FCAU) is planning to reopen one of its factories in Detroit to build its Jeep Grand Cherokee SUVs. The company is seeing good sales for SUVs and trucks and plans to focus more on utility vehicles for growth.

The plant, which was closed around six years ago, will now be used to build SUVs in order to meet the strong demand for these vehicles. Production will reportedly start by 2020. However, Fiat has provided no official confirmation for these plans.

This news comes at a time when Fiat’s peers are cutting jobs and announcing restructurings even as President Donald Trump is urging companies to increase production and create more jobs in the US. General Motors (GM) is still dealing with the aftermath of its recent decision to cut 15% of its workforce and close five of its facilities in North America.

General Motors takes hard decisions on restructuring and job cuts

This decision includes the closures of two of GM’s plants in Detroit, both of which were said to have been operating under capacity. GM opted for the restructuring to focus more on the profitable areas of its business and to do away with the weaker parts. Economic weakness and trade tensions were also said to have played a part in GM’s decision.

GM’s CEO Mary Barra met with Congress members who questioned the company’s decisions. The GM chief defended the actions as necessary for long-term growth. Barra promised to keep an open mind but did not make any solid commitment with regards to the company’s plans.

Fiat’s shares have dropped 12% so far this year while GM’s shares have fallen 14%. As of 11:40 am ET, Fiat’s stock was down 1.9% while GM’s stock was down 1.8%.

 

We’re on Apple News! Follow us to receive the latest stock market, earnings and financial news at your fingertips.

Most Popular

AVGO Earnings: All you need to know about Broadcom Q1 2021 earnings results

Broadcom Limited (NASDAQ: AVGO) reported first quarter 2021 earnings results today. Total revenue increased 14% year-over-year to $6.65 billion. GAAP net income was $1.3 billion, or $3.05 per share, compared

Infographic: Costco (COST) Q2 2021 sales up 15%; earnings miss

Retail giant Costco Wholesale Corporation (NASDAQ: COST) reported higher earnings and revenues for the second quarter of 2021. Earnings missed analysts’ expectations, while sales beat. Net profit was $951 million

Will shifting to as-a-service model help Hewlett Packard in emerging stronger from COVID?

With the corporate world rapidly shifting to cloud-native computing after the virus outbreak changed work culture and the way businesses operate, technology providers are aggressively innovating their offerings. Hewlett Packard

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top