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Chrysler 'to build Fiat 500 in Mexico'

http://news.theage.com.au/breaking-n...0818-eocu.html

Chrysler 'to build Fiat 500 in Mexico'
August 18, 2009 - 11:44AM

Chrysler Group LLC is planning to build the Fiat 500 small car at a plant in Mexico, according to a report published on Monday.

The automaker could also build an engine for the 500 at a plant in Trenton, Michigan, and is weighing building another compact car similar to the 500 in the US, according to The Wall Street Journal, which cited anonymous sources familiar with the matter.

Chrysler spokesman Gualberto Ranieri declined to comment on Monday.

Italy's Fiat Group SpA took a 20 per cent stake in Chrysler earlier this year as part of the Auburn Hills, Michigan-based automaker's exit from bankruptcy protection. The company has also received billions in loans from the federal government, which owns an eight per cent stake in the company.

Fiat, as part of its purchase, had announced plans to bring the hugely popular 500 to the US, along with the Alfa Romeo brand and Fiat-designed compact and midsize cars. The Italian automaker also plans to bring engines, transmissions and other technologies to Chrysler.

Chrysler operates an assembly plant in Toluca, Mexico, that builds the PT Cruiser sedan and Dodge Journey crossover and employs more than 2,100 workers organised under a Mexican union. The company also has a truck assembly plant in Saltillo, Mexico.

© 2009 AP