Chrysler Group LLC, which is controlled by
), 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
Ford Motor Co.
) 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
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.
FORD MOTOR CO (F): Free Stock Analysis Report
FIAT SPA (FIATY): Free Stock Analysis Report
GENERAL MOTORS (GM): Free Stock Analysis
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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.