Saltillo, Mexico—Chrysler has increased its spending to $1.249 billion to build and retool two facilities in Saltillo, Mexico.
The first $1.085 billion was invested in the construction of the new Van Assembly Plant to produce the Ram ProMaster commercial vehicle.
The additional $164 million will add a new production line to assemble Tigershark engines at the Saltillo North Engine Plant.
In total the investment will create 1,570 job.
Mexican development banks Bancomext and Nafin provided financial support for the Van Assembly Plant project.
The Van Assembly Plant, which began production in July 2013, will result in a total of more than 1,100 new jobs by December.
Both the Ram ProMaster and the Tigershark engine will be exported to different markets, based on Free Trade Agreements that Mexico has at its disposal.
The Ram ProMaster will be sold in Mexico, U.S.A. and Canada. It is the only vehicle of its kind to be produced in Mexico and joins the full line of products offered by the Ram brand. It has six-speed automatic transmission (unique for the segment), advanced security systems and vertical space that makes it more efficient to load. The ProMaster is based on the successful Fiat Ducato.
The 2.0-liter and 2.4-liter Tigershark engines will be assembled at the North Engine Plant alongside the Company’s flagship HEMI V-8 engines.
The 2.4-liter has the advanced MultiAir system, which offers low fuel consumption and emissions. The 2.4-liter engine powers the 2014 Jeep Cherokee and Dodge Dart. Production of the Tigershark engine line will begin in the first quarter 2014.
Currently, Chrysler Group’s North and South Engine Plants assemble a new engine every 17 seconds.