CHICAGO, Jan. 12 (Xinhua) -- Fiat Chrysler (FCA) has announced to invest more than one billion U.S. dollars in a Michigan truck plant and relocate its production of heavy duty pickups from Mexico to Michigan in 2020.

In a statement, the Italian-American auto maker confirmed the investment is aimed at modernizing the Warren Truck Assembly Plant in the U.S. State of Michigan.

The company will produce there the next-generation Ram Heavy Duty truck, which is to relocate from its current production location in Saltillo, Mexico, in 2020.

The FCA's decision was made in wake of President Donald Trump's threat to withdraw from the North American Free Trade Agreement (NAFTA) or overhaul the deal. The passage of U.S. tax reform legislation late last year has also prompted the action.

Trump hailed the decision of FCA, tweeting on Thursday night, "Chrysler is moving a massive plant from Mexico to Michigan, reversing a years long opposite trend. Thank you Chrysler, a very wise decision."

The Michigan plant will add 2,500 new U.S. jobs to support production of heavy-duty truck, said FCA.

The company also confirmed that it will make a special bonus payment of 2,000 U.S. dollars to some 60,000 FCA hourly and salaried employees in the United States, excluding senior leadership, in the second quarter of this year.