Chrysler to Build New V-6 Engine Plant in Mexico

$570-million project to begin in 2008

June 4, 2007 — Chrysler Group has plans to build a new engine plant in Saltillo, Mexico, a $570-million project the automaker says reaffirms its "commitment to maintain leadership in the production of advanced, fuel-efficient automobile engines."

The new Saltillo Phoenix Engine Plant will be sited in Derramadero, near a Dodge Ram pickup truck assembly plant in Saltillo. The new operation will have a capacity of 440,000 "Phoenix" V-6 engines/year, beginning in 2009. Construction will begin next June.

Chrysler indicated the new plant is part of its $3-billion Powertrain Offensive, announced in February and emphasizing production of fuel-efficient engines, axles, and transmissions. Another Phoenix Engine Plant will be located in Trenton, MI.

Both new plants will incorporate Smart manufacturing initiatives, flexible CNC-based machining, volume-bundled parts purchasing, volume-bundled capital investment, and standardized tooling.

The Phoenix family of engines is part of Chrysler's plan to concentrate its family of V-6 engines around a single design, rather than the four models now produced.

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