Chrysler Group will spend $570 million to build a new engine plant in Saltillo, Coah.

      Scheduled to begin production in 2009, the plant will produce a new family of fuel-efficient V-6 engines, known as “Phoenix” engines.

      Frank Ewasyshyn, Chrysler Group executive vice president - manufacturing, was joined by Mexico President Felipe Calderón and the Coahuila Gov. Humberto Moreira at Los Pinos, Mexico’s official presidential residence for the announcement. The investment reaffirms the company’s commitment to maintain leadership in the production of advanced, fuel-efficient automobile engines.

      Construction of the new plant will begin in June 2008. The Saltillo Phoenix Engine Plant is part of the Chrysler’s Group $3 billion Powertrain Offensive announced in February for the production of more fuel-efficient engines, axles and transmissions. The Chrysler Group’s Powertrain Offensive also plays a key role in the company’s recovery and transformation plan and will support 20 new vehicles to be launched during the next three years.

      Calderón expressed pleasure at the announcement of the Chrysler Group’s investment. Together with other investments made by the Freightliner Group, also belonging to the Chrysler Group, in the same valley near Saltillo, this firm has invested a total of nearly $1 billion.

      Calderón said that Mexico has a number of advantages for investment in long-term productive projects. First, it is conveniently located. Second, it has trade links with 44 countries, as well as a thriving tree trade agreement with the United States. Third, it has a young population, with an average age of 27. Fourth, it has a highly-qualified labor force, and fifth, it has a solid, stable economy.

      The Mexico plant is the second Phoenix Engine Plant recently announced by the automaker. The other plant will be located in Trenton, Mich., next to the current Trenton Engine site.

      “Today’s celebration commemorates an important milestone for the Chrysler Group because — through the recovery and transformation plan — we’re investing in the international future of our company,” said Ewasyshyn. “This $570 million investment will have a positive impact on the regional economy. The Chrysler Group has a deep commitment to our Mexican operations with more than 60 years of history here, and we will continue that commitment going forward.”

      President Calderón described his government’s role in leading development of Mexico’s economy and his goal to see it ranked fifth in the world by 2030, and expressed gratitude for Chrysler’s investment in Mexico.

      The new Saltillo Phoenix Engine Plant will have an annual manufacturing capacity of 440,000 engines and will be situated in Derramadero, near Chrysler Group’s Saltillo Truck Assembly Plant which builds the Dodge Ram.

      “The automotive products that we produce in Saltillo are internationally recognized for their high quality due to several factors, the most important being our workforce. We are very proud of the union and the support of our workers, many of whom were born and raised in this area,” said Roberto Gutierrez, Chrysler Group Mexico vice president - manufacturing.

      Once the plant is fully operational, Saltillo Phoenix Engine Plant will have 485 full-time Chrysler Group employees.

      Coahuila Gov. Moreira said: “I’m pleased to announce that the Saltillo area is one of the most significant automobile regions of the country. Due to the importance and the number of automotive companies that are located in this area, we’re recognized as the automobile capital of Mexico, which is a little like Detroit in the U.S. With its plants, the Chrysler Group has a leading role in this area, strongly supporting the industry.”

      As with the Trenton Phoenix Engine Plant, the Saltillo Phoenix Engine Plant will incorporate Smart manufacturing initiatives, flexible CNC-based machining, volume-bundled parts purchasing, volume-bundled capital investment and standardized tooling.

      Over the long term, the Phoenix family of V-6 engines will reduce manufacturing complexity by paring the four current V-6 engine architectures to one.

      Headquartered in Auburn Hills, Mich., Chrysler Group has invested more than $2 billion in its Mexico manufacturing operations since 2004 and $10.7 billion in its North American operations since 2003.

Safety recognized

      Earlier this year, Alan C. McMillan, president and CEO of the National Safety Council (NSC) and president of the International Safety Council, presented Chrysler Mexico with 18 National Safety Council awards for outstanding safety performance. Chrysler Mexico is the first automotive manufacturer in Mexico to receive these awards.

      “During a tour of your facility, I learned firsthand how Chrysler is furthering its global reputation as a best in class safety organization throughout Mexico,” said McMillan.

      Seven Chrysler Mexico operations were recognized for outstanding safety in key performance areas. The 18 awards were given to:

      •Toluca Assembly – Chrysler PT Cruiser and Chrysler PT Cruiser Convertible. NSC Awards: Perfect Record, Significant Improvement, Million Work Hours, Lift Truck Operator.

      •Saltillo Truck Assembly – Dodge Ram Quad Cab 4x2 and 4x4, Dodge Ram Regular Cab 4x2 and 4x4, Dodge Ram Mega Cab 4x2 and 4x4, Dodge Ram Chassis-Cab. NSC Awards: Significant Improvement, Million Work Hours, Lift Truck Operator.

      •Saltillo Engine – 2.0-liter/2.4-liter DOHC engines, 2.4-liter turbo engine, 5.7-liter V-8 HEMI engine and 6.1-liter V-8 engine. NSC Awards: Significant Improvement, Lift Truck Operator.

      •Toluca Stamping – Body panels for Chrysler PT Cruiser and PT Cruiser Convertible. NSC Awards: Perfect Record, Significant Improvement, Million Work Hours.

      •Saltillo Stamping – Body Panels for Dodge Ram Quad Cab 4x2 and 4x4, Ram Regular Cab 4x2 and 4x4, Dodge SRT10, Dodge Ram Mega Cab 4x2 and 4x4, Dodge Ram Chassis-Cab. NSC Awards: Perfect Record, Lift Truck Operator.

      •Toluca Parts Distribution Center – Distributes and sells parts and accessories to DaimlerChrysler’s dealer network. NSC Awards: Perfect Record, Lift Truck Operator.

      •Santa Fe General Offices – General office for sales, manufacturing, production and procurement and supply in Mexico. NSC Awards: Perfect Record, Million Work Hours.

      “Since 1999, Chrysler has been trying to close the gap with other automotive manufacturers,” said James Thomas, director - health, safety & medical operations, Chrysler Group. “As recognized by the National Safety Council’s evaluations, Chrysler has made great progress in safety and health awareness programs.”

      Five facilities received awards for a minimum of 480 consecutive work hours without an accident or property damage involving a lift truck. Four received “Significant Improvement Awards” for having reduced the number of injuries and illnesses involving days away from work by 20 percent from the previous year. Five locations received “Perfect Record Awards” recognizing facilities that have completed a period of 12 consecutive months without one occupational injury or illness that resulted in days away from work. Two received the “1 Million Work Hours Award” and another two received “6 Million Work Hours Award” for consecutive work hours without an injury or illness that resulted in days away from work. This award is rarely given because it requires consecutive years of achieving zero injuries and illnesses to attain.

      An even rarer safety award, “10 Million Hours Award” was presented to Toluca Assembly for outstanding safety accomplishment for consecutive work hours without an injury or illness that resulted in days away from work.

      “The management and employees of this facility are to be commended for their commitment toward achieving this remarkable distinction,” said McMillan.

      The National Safety Council was formed nearly 100 years ago out of a concern for the safety of workers. Chrysler shares the National Safety Council’s history and historical commitment to protecting the safety and health of its workers and the driving public. Chrysler has been a member of the National Safety Council since 1922.