Friday 24 May 2013
Monterrey, Mexico,- Chrysler agreed on assigning 35% of their shares to Fiat and analysts in the .sector consider the association will cause movements in automotive operations in North America, especially Mexico.“Fiat may take advantage of lower production costs and high quality of labor in Mexican plants”, Pascual Francisco, from HIS Global Insight said.
“Chrysler has ample capacity in their Toluca Plant, where they produce Dodge Journey, and therefore in addition to using this production site, Fiat could even build a new plant for their products (in Mexico)”, he added.
Chrysler also has facilities in Coahuila. Francisco explained that Fiat has not performed in Mexico as they wanted due to high logistics and production costs, because they must bring their units from Europe and Brazil.
“Fiat is familiar with the bounties of Mexican labor, for it has been here for several years now with their New Holland Agriculture and Commercial Vehicles Division”, Mr. Francisco said.
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