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Chrysler Confirms Investments in Two Plants in Mexico

October 11, 2013

Chrysler Group Chairman and CEO Sergio Marchionne confirmed investments totaling $1,249 billion in two Saltillo facilities and the creation of 1,570 jobs during a dedication event at the new Van Assembly Plant with President of Mexico Enrique Pena and Minister of Economy Ildefonso Guajardo.

Of the total investment, $1,085 billion was invested in the construction of the new Van Assembly Plant to produce the Ram ProMaster commercial vehicle, according to the automaker. The additional $164 million will add a new production line to assemble Tigershark engines at the Saltillo North Engine Plant. Mexican development banks Bancomext and Nafin provided financial support for the Van Assembly Plant project.

The Van Assembly Plant, which began production in July 2013, will result in a total of more than 1,100 new jobs by December. The new investment at the North Engine Plant will create 470 new jobs. With this announcement, employment in Saltillo will grow to nearly 6,500. Both the Ram ProMaster and the Tigershark engine will be exported to different markets, based on Free Trade Agreements that Mexico has with several countries.

The Ram ProMaster assembled in the new plant will be sold in Mexico, the U.S., and Canada. The ProMaster is based on the Fiat Ducato, which has earned an excellent reputation over three decades of service, according to Chrysler.

The 2.0-liter and 2.4-liter Tigershark engines will be assembled at the North Engine Plant alongside the Company´s flagship HEMI V-8 engines. The 2.4-liter has the advanced MultiAir system, which combines excellent response throughout the revolutions range with low fuel consumption and emissions, according to the company. The 2.4-liter engine powers the 2014 Jeep Cherokee and Dodge Dart. Production of the Tigershark engine line will begin in the first quarter 2014.

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  1. 1. Chris Whiting [ October 11, 2013 @ 10:44AM ]

    When is big manufacturing going to wake up! Build trucks and parts in the US, give US workers jobs and then they will be able to buy your products. How many of these trucks are you going to sell in Mexico versus the US?
    Then ask the US for a bailout when needed. Not making too much sense.
    Buy Fords, they are moving more production to the US every year.

  2. 2. CO [ October 13, 2013 @ 09:40PM ]

    Chris, I can understand your frustration with chryslers continuing endeavors in Mexico and whatnot. However, the reason Chrysler is building its vans in Mexico rather than in an American plant is due to the simple fact that it is ridiculously expensive to export commercial vehicles out of America. Another conveniently looked over tidbit is the fact that Mexico is a free trade zone between North and South America which is where Fiat's largest market is, Brazil, where Fiat basically owns the automotive market. Simply put, it just wouldn't be smart business to build such a key vehicle in America over Mexico.



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