Chrysler plans to produce Fiat 500 in Mexico

According to the newspaper, Chrysler will soon also introduce new small Fiat models for the U.S. market.

The decision to make the Fiat 500 at the Chrysler plant in Toluca, Mexico, could be an initial test of relations between the administration and the two new owners of Chrysler with key U.S. government and the workers union United Auto Workers (UAW ). Plant workers are represented by a union in Mexico, not the UAW.

Earlier this year, Chrysler was rescued from the automotive financial collapse when the government provided 15 billion dollars in emergency loans and arranged a plan that gave control of the Fiat company.

The Toluca plant in Mexcio is an attractive venue for the Fiat 500 as some units could be exported to markets in Central and South America.

Chrysler plans to build a small engine for the Fiat 500 in a Chrysler plant in Trenton, Michigan, and considers the construction of a compact, slightly larger than the 500 United States to be marketed, said the newspaper.

The location and the freedom from UAW are of course attractive to Chrysler. However, Chrysler is making this move at a time when thousands of people in the United States are losing jobs and having such a plant that will produce cars for the U.S. market in the United States could make a serious contribution to creating jobs in United States and boost the morale of the U.S. auto industry. However, business is driven by profits and business decisions.

Written by Armen Hareyan