According to Reuters, the Fiat 500 will be produced at a Chrysler plant near Mexico City by December. Cars assembled there are destined for the U.S. and Latin American markets, Marchionne, who also leads Chrysler, added.
Chrysler's investment will be financed through a loan from Mexican development banks. The 130,000 units final production output and the destination markets are the only details available so far.
"I don't think we are going to shrink American's tastes by introducing the Fiat 500. We are only looking for a particular space in the market for this car to occupy," he was quoted as saying by Reuters. "The 500 is just one example of how Fiat's experience in the small to medium vehicles segments and its expertise in fuel saving technologies will play a key role in Chrysler's revival," Marchionne added.
Last year, the U.S. government put Fiat in Charge of Chrysler as part of a restructuring of the Company in a government bankruptcy. After the new management took over, a plan to increase sales by over 200 percent was released - this is to be achieved by releasing multiple new models underpinned by Fiat platforms. Chrysler aims to repay its debt to the U.S. government over the next five years.