Chrysler to Build Fiat Ducato Van at Saltillo Plant for North America
Chrysler will expand its Saltillo facility in Mexico to produce the Fiat Ducato van under the Ram brand for North American sale from 2013, targeting a gap in its commercial line-up.
Chrysler Group has confirmed plans to expand its Saltillo plant in Mexico to begin production of the Fiat Ducato commercial van, which will be rebadged and sold as a Ram in North America from 2013. The move marks a new phase in Chrysler’s partnership with Fiat, aiming to strengthen Ram’s presence in the full-size van segment where it currently lacks a dedicated offering.
Sergio Marchionne, CEO of Chrysler and Fiat, said the Saltillo expansion will make the site the hub for light-commercial vehicle production in North America. The company has not disclosed the precise investment figure, but sources cited by Automotive News put the number at about $500 million.
Saltillo already houses a truck assembly plant, a stamping plant and two engine plants, supporting Chrysler’s North American operations. The decision to add Ducato production builds on Mexico’s growing role as a manufacturing base for global automakers, following a broader trend of investment in the country’s automotive sector. For more on Mexico’s emergence as a major car production hub, see Mexico’s Car Production Surges as Global Automakers Invest Billions.
Ram’s commercial van strategy
Ram’s current commercial van, the C/V, is based on the Dodge Grand Caravan and is not a full-size competitor. In 2011, Ram sold just 691 C/Vs, while Ford’s Econoline reached 91,305 units and the Transit Connect 31,914. The lack of a full-size van has left Ram trailing in a market segment dominated by Ford and General Motors. Previously, under DaimlerChrysler, Ram sold the Sprinter van, but that relationship ended when Daimler divested its Chrysler stake.
The Fiat Ducato, which shares its platform with the Peugeot Boxer in Europe, is a front-wheel-drive van designed for flexibility and payload. Marchionne said the van is well-suited to the North American market and expects it to grow Ram’s commercial sales once local production begins.
What the Saltillo expansion means for Chrysler
Bringing Ducato production to Saltillo is expected to improve supply chain efficiency for North American dealers and reduce import costs compared with shipping vans from Europe. The investment also reinforces Chrysler’s commitment to its Mexican operations, which have become increasingly important for export-oriented production. The Saltillo plant’s expansion will likely create new jobs and further integrate Fiat and Chrysler’s commercial vehicle strategy for the region.
The Ram-badged Ducato will give Chrysler a direct rival to Ford’s Transit and GM’s Express, addressing a gap that has limited Ram’s appeal to fleet and commercial buyers. The move also signals further alignment between Fiat and Chrysler product lines following their merger.
