Chrysler says it will invest $550 million to build Fiat 500 at Mexican assembly plant

Chrysler pledges $550M to build Fiat 500 in Mexico

MEXICO CITY — Chrysler Group LLC says it will invest $550 million to build the Fiat 500 minicar at its assembly plant near Mexico City.

Chrysler CEO Sergio Marchionne says the new work at its Toluca plant will create 400 jobs. He said Monday the company will begin making the model in December for U.S. and Latin American markets.

Mexican President Felipe Calderon says Chrysler will produce between 100,000 and 130,000 vehicles at the plant, creating about 1,200 indirect jobs. Chrysler says the Mexican government has provided a $400 million incentive package for the project, the majority of it as loans.

Chrysler, controlled by Italian automaker Fiat Group SpA, already employs 2,000 workers to manufacture the PT Cruiser sedan and the Dodge Journey at the factory.

The automaker also has a truck assembly plant in the northern Mexico city of Saltillo.