Chrysler spends $1.2 billion to expand in Mexico

Jeep Cherokee SRT. Photo/Supplied

Chrysler Group says it's investing more than $1.2 billion in two Mexican plants to build commercial vans and engines.

Chrysler CEO Sergio Marchionne confirmed the amount Thursday at the dedication of Chrysler's new Van Assembly Plant in Saltillo.

Chrysler spent about $1.1 billion to build the plant, which began making the Ram ProMaster van in July. The plant will employ 1,100 workers by the end of this year.

Chrysler is spending an additional $164 million to add 470 workers on a new production line at its Saltillo North Engine Plant.

The plant will start making Chrysler's Tigershark four-cylinder engine early next year. The engine is used in the Jeep Cherokee SUV and the Dodge Dart sedan.

The expansions bring Chrysler's employment in Saltillo to nearly 6,500 people.