Chrysler inaugurated a $570 million engine plant in northern Mexico Friday, the Mexican presidency said.
Chrysler plans to produce its new Pentastar V-6 engine at the plant in Saltillo, in Coahuila state, for Chrysler, Dodge, Jeep and Ram vehicles.
Chrysler's sixth plant in Mexico will produce up to 440,000 engines per year, the statement said.
President Felipe Calderon said the plant would create 700 jobs.
Mexico produced 1.66 million vehicles in the first nine months of 2010, 67% more than in the same period the previous year, according to the Mexican Automobile Industry Association.
It exported 1.37 million vehicles, mainly to the United States.
Copyright Agence France-Presse, 2010