MEXICO CITY, August 30, 2011- Fiat and Chrysler de Mexico are building a new vehicle production plant in Derramadero, Coahuila, where they will manufacture the Fiat Ducato model, a cargo van, which is currently imported from Italy.

Sources close to the parts supplier in Ramos Arizpe indicated that the factory will be located in a 108,200 square meters (m2) site, where the company recently built an engine plant with a capacity of 400,000 units per year, in which $570 million dollars (mdd) were invested.

This plant manufactures the new family of V-6 engines known within the Chrysler Group as "Phoenix" engines.

Likewise, sources confirmed that Chrysler will produce the Fiat Panda model at the Toluca plant. This subcompact is currently imported from Brazil and uses the same platform as the Fiat 500, which is already produced at the Toluca plant.

The Fiat Panda is an A-segment car produced by Fiat since 1980. It is one of the best known "superminis" or "city cars" in the world, ideal for urban traffic.

When questioned about these projects, Manuel Duarte, corporate communications manager of Chrysler de México said that "we do not have any new investment projects to comment on at this time".

(El Semanario Agencia, ESA).