Chrysler to expand Mexico operations

Auto maker Chrysler is to invest more than $US1.2 billion ($A1.27 billion) in two Mexican plants to build commercial vans and re-engineered 2.0- and 2.4-liter I-4 engines for export.

AP reports that Chrysler chief executive Sergio Marchionne announced the news on Thursday as he toured the company’s new Van Assembly Plant in Saltillo with Mexican President Enrique Peña.

The car manufacturer spent about $US1.1 billion to build the plant, which began making the Ram ProMaster van in July. It will employ 1,100 workers by the end of this year.

As Automotive News reports, the engines to be manufactured in Mexico are known as ‘Tigershark’. They are the primary four-cylinder engines used in the Dodge, Jeep, and Chrysler vehicles and will be exported to other countries.

Chrysler is spending an additional $US164 million on the new engine work. It will add 470 workers on a new production line at its Saltillo North Engine Plant. The plant currently employs nearly 6,500 people.