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La Liga de Las Americas

Chrysler to build $570M engine plant in Saltillo, México

DETROIT, June 2, 2007 (AP): Chrysler will build a $570 million plant in Saltillo, México, to manufacture the next generation of V-6 engines for the company’s cars.

There was word from Chrysler on the status of its Kenosha, Wis., engine plant, which makes V-6 engines for Chrysler and Dodge cars. But Matt Canter, a spokesman for Wisconsin Gov. Jim Doyle, said that did not mean Chrysler had ruled out an investment there.

``We don't interpret this as a bad sign,'' he said.

``Signs remain positive, and the administration is in close communication with the company. The governor's hopeful that they will make the right choice—investing here in Wisconsin.''

Chrysler, a majority of which is in the process of being sold by DaimlerChrysler AG to Cerberus Capital Management LP, said Friday that the plant in México is part of a $3 billion investment in powertrains that is part of its restructuring plan.

Construction of the new plant will begin in June of next year, with the first engine coming off the line in 2009, the company said in a statement.

The automaker already has announced that it also will build the same ``Phoenix'' engine at a new plant to be built in the Detroit suburb of Trenton.

The investment in México was announced Friday at México's official presidential residence, the company said.

Chrysler said the new family of engines will be more fuel efficient and part of its plan to produce engines, axles and transmissions that save gasoline.

The plant, to be constructed near an existing Chrysler truck assembly plant, will have the capability of building 440,000 engines per year.






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