DaimlerChrysler said Wednesday it would invest $1 billion to retool its Toluca assembly plant in Mexico and create a pair of nearby industrial parks in conjunction with its suppliers.
The automaker said the investment, the bulk of which would be made this year, would give its Toluca plant more manufacturing flexibility.
The plant west of Mexico City is where DaimlerChrysler makes its Chrysler PT Cruiser, the retro-styled sedan the company launched six years ago.
DaimlerChrysler announced the investment on the same day Mexico’s President Vicente Fox attended an event at the plant with workers, executives and union leaders to celebrate that production of the PT Cruiser had passed the 1 million mark.
“The decision to invest in Mexico would not have been possible without the support of the union and the Mexican government’s commitment to the automotive sector,” Chrysler group chief operating officer Eric Ridenour said.
On Tuesday, DaimlerChrysler said it was consolidating its management of Latin America and the Caribbean in its Mexico City headquarters.
The plant would be upgraded with new robotics and a new body shop that would give it the ability to shift production more quickly in response to customer demand, the company said.
Its supplier parks, which would provide just-in-time delivery of a range of parts including rear suspensions, would be jointly funded, the company said.
DaimlerChrysler said it would undertake the bulk of the planned investment in the Toluca plant. Suppliers joining the carmaker in creating the nearby industrial parks include Automotive Holdings Corp., Intier Automotive Inc. and Germany’s Brose, a Chrysler spokeswoman said.
