Chrysler to produce Fiat in Mexico

US automaker Chrysler is considering production of Fiat 500 compact cars at its plant in Mexico, according to a report in the Wall Street Journal. Detroit, Michigan-based Chrysler, which formed a partnership with ItalyÔÇÖs largest car maker Fiat as part of its bankruptcy deal in June, is considering a plant in Toluca, Mexico for the manufacture of its compact Fiat 500.  The location is ideal due to its proximity to South and Central America, where the cars are popular. The Mexican plant, which employs 2,180 people, currently also makes the Dodge Journey crossover and PT Cruiser. Turin, Italy-based Fiat acquired management control and a 20 per cent stake in Chrysler in return for allowing the US company, which filed for bankruptcy in April this year, access to Fiat technology and platforms. The deal provided Fiat with its first foothold in the North American market. It is possible that FiatÔÇÖs stake could be raised to 35 per cent if certain conditions are met. Chrysler is also drawing up plans for the manufacture of an engine for the 500 at its Trenton, Michigan plant, in addition to the release of a new compact car that will be slightly larger than the 500 for the US market, the paper said.  * ┬á┬á┬á┬á┬á┬á┬á*┬á┬á┬á┬á┬á┬á┬á *