Chrysler to make Fiat in Mexico: report

NEW YORK (Reuters) - Chrysler Group is planning to produce Fiat SpA's (FIA.MI) Fiat 500 subcompact at a Chrysler plant in Mexico, the Wall Street Journal reported, citing people familiar with the matter.
Chrysler is also considering what other Fiat models to introduce to the U.S. market, under directions from its Italian partner, the paper reported on its website on Sunday.

Plans also include making a small Fiat engine for the 500 at a Chrysler plant in Trenton, Michigan, and building a Fiat-derived compact car slightly larger than the 500 in the United States, a source told the paper.

The Toluca, Mexico plant, which currently makes the Dodge Journey crossover and PT Cruiser, is an attractive home for the 500 because cars could be exported to South and Central America where the Fiat brand is popular, the Journal reported.

Fiat acquired a 20 percent stake in Chrysler and entered into agreements to give it access to Fiat technology and platforms. Chrysler filed for bankruptcy in April.

Chrysler representatives were not immediately available for comment

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Where Will the Fiat/Dodge 500 be Built?

The Local 4 Detroit TV News reported that Fiat is looking at producing the Fiat 500 at Warren,Michigan the Dodge Ram Truck Plant or Belvidere Ill. the Dodge Caliber plant.

The Chrysler engineers have been studying the Tychy Poland plant were the Fiat 500 is currently produced. The Tychy Plant produces about 500,000 Fiat 500s a year. The Belvidere Ill. plant can only produce about 265,000 A year.

The Dodge Ram Truck plant in Warren Michigan is a large facility. It also has it's stamping plant attached and a large shipping yard. The Warren Truck is capable of building 1100 full size trucks a day.

Which this plant could give Chrysler-Fiat the capacity it needs to produce 4 different models of the 500 and high volume.
Hopefully Chrysler-Fiat decides to build the Fiat 500 in the United States, but they better make a move soon.

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