BrianLaws
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| Posted: Mon Aug 17, 2009 9:47 pm Post subject: Chrysler to build Fiat 500 in Mexico |
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| Quote: |
AP Source: Chrysler to build Fiat 500 in Mexico
By TOM KRISHER (AP) – 5 hours ago
DETROIT — Chrysler Group LLC, now being run by Italian automaker Fiat Group SpA, is planning to build the Fiat 500 minicar at a factory in Mexico, according to a person briefed on the company's plans.
The automaker also is considering building a compact car in the U.S. that could be larger than the 500, according to the person, who did not want to be identified because the plans have not been made public.
Chrysler spokesman Gualberto Ranieri declined to comment Monday. But news of the Fiat 500 decision disappointed several members of the United Auto Workers union who had hoped that the minicar would be made at a U.S. factory because of UAW cost-saving concessions and the fact that Chrysler has received $15.5 billion in U.S. government aid.
Even though the UAW has made concessions to reduce labor costs, workers still make far less per hour at Mexican factories. Since small cars generally fetch lower prices than larger vehicles, the profit margins are narrower, making low costs important. Also, Mexican factories are closer to Brazil, a key market for Fiat.
UAW members were hoping that Fiat would build the 500 at an assembly plant in Sterling Heights, Mich., which is slated to close by the end of 2010.
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Full Story Here: http://www.google.com/hostednews/ap/article/ALeqM5iYmCQeVyZyXYjLyX_JMdWQ3U7ttAD9A4SFLO2 |
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