DaimlerChrysler announced a $1 billion investment in its Mexican Manufacturing and Supplier Operations here to modernize and retool the facilities and to create new industrial parks for suppliers. The investment, the bulk of which will take place in 2006, includes upgrades to the Toluca Assembly Plant, the creation of two supplier parks, and additional operational improvements.

The investment will provide the Toluca facility with the flexibility to manufacture derivative models on one assembly line.

“The decision to invest in Mexico would not have been possible without the support of the union and the Mexican government’s commitment to the automotive sector,” said Eric Ridenour, chief operating officer for the Chrysler Group. “Our Mexican Manufacturing Operations have earned this investment by embracing flexible work force processes.”

The improvements at the Toluca Assembly Plant will include an all-new body shop with state-of-the-art manufacturing capabilities. New robotics will have the capability to make necessary tool changes automatically within cycle time, thus amplifying the plant’s flexibility, according to the company.

The Toluca Assembly Plant will have the capability to vary its product mix to better respond to customer demand.

The newly built and jointly funded supplier parks will enhance plant operations and focus on increasing modular assembly systems. The supplier parks will provide headliners, cockpits, front-end modules, and front and rear suspensions. The location of the supplier parks, near the Toluca facility, will provide just-in-time production for the plant.