Chrysler Group LLC, which is controlled by Fiat S.p.A , said last week that it will be increasing its workforce by 1,250 workers in three of its plants located in Michigan. The decision comes in light of the rising demand for redesigned trucks. The company also plans to invest $240 million in the plants to boost the production of Ram pickups.
The Ram pickup truck provides a mileage of 25 miles per gallon on the highway. The vehicle automatically shuts down at the signals in order to save fuel. Owing to these advantages, the sales of the Ram pickup truck increased 20% year over year in the month of October 2012. Ram Truck brand sales went up 17% year over year to 25,609 units in October.
Chrysler intends to add 1,000 new workers at the Warren, Michigan plant in March 2013. In addition, the company plans to hire 250 workers in the Mack 1 plant, which currently engages in the production of V-8 engines. These additional workers will be employed for making V-6 engines.
Michigan-based leading automakers General Motors Company (GM - Analyst Report) and Ford Motor Co. (F - Analyst Report) believe that the truck market is improving after several years of sluggish growth. Recovery of the housing market and rising age of the trucks on road are boosting the truck market performance.
According to Ford, 53% of the truck fleets are more than 10 years old and 27% are more than 15 years old. General Motors, on the other hand, plans to grab the market with the ramp up of Chevrolet Silverado and GMC Sierra.
Headquartered in Auburn Hills, Chrysler is one of the world's most recognizable automobile producers. A majority of the company is owned by Fiat S.p.A. It sells its vehicle under Fiat, Dodge, Ram, Chrysler and Jeep brand.
Currently, Fiat retains a Zacks #3 Rank, which translates into a short-term (1 to 3 months) Hold rating.