Fiat Chrysler Is the Latest Company to Give Workers a Big Bonus After U.S. Tax Reform
Fiat Chrysler Automobiles (FCAU) will send $2,000 checks to workers in the wake of the U.S. tax bill, joining giants including Wal-Mart Stores and AT&T in sharing the spoils of a lower corporate rate with employees.
The Italian-American automaker said the bonuses will be paid out to about 60,000 U.S. workers. Fiat Chrysler also is investing more than $1 billion at a truck factory near Detroit to produce heavy-duty versions of the Ram pickup starting in 2020. The plant will add 2,500 jobs, according to a statement.
Fiat Chrysler is paying double the bonus that phone carrier AT&T (T) said it would pay workers after President Donald Trump and Congress cut the U.S. corporate tax rate to 21% from 35% late last year. Wal-Mart (WMT) said earlier Thursday it will boost wages to $11 an hour and also write checks for as much $1,000 to employees.
The investment follows a dramatic jump in Fiat Chrysler stock amid optimism about its product lineup being revamped with fresh trucks and sport utility vehicles. The company’s U.S.-listed shares have surged 31% already this year after almost doubling in 2017. The automaker is set to reveal revamped Ram 1500 and Jeep SUV models at the Detroit auto show next week.