Chrysler officially announces plans to expand its Mexican engine and assembly plants image

Following the report we published two days ago about the Chrysler’s Group intention to expand its plant in Mexico to build more of the “Tigershark” engines, the American automaker has now confirmed the plan.

Chrysler confirmed on Thursday investments totaling $1.249 billion in two Saltillo, Mexico facilities to produce commercial vehicles and a new line of engines. Chrysler Group Chairman and CEO Sergio Marchionne also confirmed the creation of 1,570 jobs during a dedication event at the new Van Assembly Plant, alongside President of Mexico Enrique Peña and Minister of Economy Ildefonso Guajardo.

“I would like to thank President Enrique Peña Nieto for the support his administration has given us, first as Governor and now as President. He has always shown a great commitment to promoting strategically important projects,” said Marchionne. “All of this would not be possible without the extraordinary spirit of collaboration we have found in both the federal and state governments. We feel privileged to have the opportunity to contribute to the future growth of Mexico.”

“I want you to know how much I appreciate your hard work and your dedication to the principles of World Class Manufacturing, which is enabling us to compete with the very best plants in the world,” Marchionne told employees during the ceremony.

No less than $1.085 billion was used for the construction of the new Van Assembly Plant, slated to build the Ram ProMaster commercial vehicle. Another $164 million would be used to add a new production line to build Tigershark engines at the Saltillo North Engine Plant. The new Ram ProMaster would sell in Mexico, U.S.A. and Canada.