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LatinNews Regional Monitor: Mexico - 12 January 2018

In brief: Mexico

* Fiat Chrysler Automobiles (FCA), the US-Italian automobile producer, has announced plans to move its Ram Heavy Duty pick-up production line from Mexico to the US. A company statement said that the firm had decided to invest US$1bn to upgrade its production plant in Warren, Michigan, in order to produce the Ram range there from 2020 rather than in its plant in Saltillo, in Mexico’s Coahuila state. FCA added that the decision was taken in the wake of the recent approval by the US Congress of the tax reform promoted by the government led by President Donald Trump. The tax reform significantly reduces business tax rates in the US, leading Mexican analysts to warn that this could result in manufacturers opting to divest from Mexico and invest in the US instead.