Saving Jobs In Mexico For Chrysler

Tell me again why we saved Chrysler.

From the WSJ:

Under the direction of Fiat SpA, Chrysler Group LLC is devising plans to produce the Italian auto maker’s Fiat 500 subcompact at a Chrysler plant in Mexico, according to people familiar with the matter, while considering what other Fiat models to introduce to the U.S. market.

Chrysler is also looking at making a small Fiat engine for the 500 at a Chrysler plant in Trenton, Mich., and is considering building a Fiat-derived compact car slightly larger than the 500 in the U.S., a person familiar with the plans said.

Chrysler spokesman Gualberto Ranieri declined to comment on the company’s product plans, which he said will be announced at a future date.

A decision to make the 500 in Toluca, Mexico, could be an early test for relations between Chrysler’s new management and two key owners, the U.S. government and the United Auto Workers union. The plant’s workers are represented by a Mexican union, not the UAW.

I recall hearing a lot of talk about saving American jobs. This doesn’t sound like it will do much of that. Oh, and we were going to create leaner, meaner manufacturers that could compete with anybody.

Here’s why they’re planning on building the cars in Mexico:

Chrysler doesn’t believe it could make much profit, if any, if it were to assemble the 500 in a U.S. plant, these people said.

Probably a stupid question, but you think that we might have been sold a bill of goods?

more: here

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