Fiat to Build Second Model in Mexico

Sergio Marchionne, CEO of both Fiat and Chrysler, is looking into ways to manufacture a second model in Mexico, besides the 500 model that's addressed to the US market. Chrysler's Toluca plant, which will also build an electric flavor of the 500, will get the new model in a few years, but Marchionne remained tightlipped on the name of the car.

"We need to decide what we're going to do with that plant," he said according to a Bloomberg report. "The likelihood is that we will bring in an architecture that is more versatile and will give us an opportunity to produce more than one top hat."

The Saltillo, Mexico plant is likely to be used by Chrysler to assemble commercial vehicles, but the company is still discussing this possibility with the local government.

Chrysler this week started production of the Fiat 500 in Mexico, with over 120,000 units to be built in Toluca every year, with units to be exported to the US, Canada and South America. China will also get Mexico-built Fiat 500 starting with the third quarter of this year.

“Fiat 500 production here is an important landmark because it reaffirms Chrysler’s commitment to Mexico that dates back to 1938,” said Marchionne.

“Mexico is in an ideal position for production of this car. Because of its free-trade agreements with neighbors to both the north and south, it is a bridge between NAFTA and Latin America. And for the Mexican market, where the 500 has already been sold for several years, this marks an important shift from a vehicle imported from Europe to one that is built locally.”