According to an Automotive News report, Chrysler Group is saying adios to Toluca, Mexico, and moving production of its next-generation Dodge Journey to Detroit, Michigan, when the model is replaced in 2016. The change of venue, discovered through sources at suppliers, would mean the mid-size crossover would be built alongside the next-generation Chrysler 200 sedan, due in 2014, at the automaker's Sterling Heights Assembly Plant. It would also leave the Toluca plant without a product after 2016.

Chrysler has been assembling its Journey in Mexico to facilitate exporting to Europe and South America (where it's rebadged as the Fiat Freemont). However, shifting production to the States would allow for higher sticker prices in those markets, according to current trade agreements. In addition, the move would consolidate the automaker's CUSW-platform vehicles (e.g. Dodge Journey, Chrysler 200, Dodge Dart, Jeep Cherokee) to three assembly plants, all geographically close, easing supply chains and lowering costs. Chrysler has not commented on the report.


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  • 22 Comments
      BipDBo
      • 1 Year Ago
      "However, shifting production to the States would allow for higher sticker prices in those markets, according to current trade agreements." What does that mean? Does the EU regulate how much a car can be sold for based on where it is made? By law, Mexican cars must be cheap?
        The Wasp
        • 1 Year Ago
        @BipDBo
        I'm thinking maybe they meant higher profits(?) -- I don't see why a manufacturer would want to raise the price unnecessarily, especially with a vehicle like the Journey that isn't really a clear segment leader.
        1guyin10
        • 1 Year Ago
        @BipDBo
        I think the author is misinterpreting the AN article. It would push prices up, but only because import tarrifs are higher for vehicles exported from the US to those markets. Shipping them from the US is not an advantage.
      DeathKnoT
      • 1 Year Ago
      Probably has to do with the upcoming eu us free trade. Seems the automotive part is on track for the fast track. Seeing as everyone on both sides see it as positive.
      ddirkdiggler302
      • 1 Year Ago
      thats strange i thought it was cheaper to produce cars down in mexico? i wander what there going to put in its place
        Alfonso T. Alvarez
        • 1 Year Ago
        @ddirkdiggler302
        Where are you going to wander to?
          56Jalopy
          • 1 Year Ago
          @Alfonso T. Alvarez
          That was his mind wandering
        AMMinter
        • 1 Year Ago
        @ddirkdiggler302
        They're also talking parts logistics, which is a huge cost. If you don't have to transport your parts another 1500 miles and then ship all the dunage back to plants in the mid-west it adds up to pretty huge savings.
      luigi.tony
      • 1 Year Ago
      I'm guessing FIAT has better products they plan on building in their Mexican factory.
      • 1 Year Ago
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      • 1 Year Ago
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      FierySolstice
      • 1 Year Ago
      2016?!?! That should have been redone 2 years ago!
        Snark
        • 1 Year Ago
        @FierySolstice
        Not really. A 7-8 year model run is perfectly typical. It got its MCE two years ago, just about halfway.
      • 1 Year Ago
      [blocked]
      Andrew
      • 1 Year Ago
      thanks bu tno thanks I will take a GM Lambda
      • 1 Year Ago
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        1guyin10
        • 1 Year Ago
        500 is moving to Poland with the next redesign. The folks at Chrysler aren\'t talking about what will replace those models at Teluca, but it must be something with some high volume potential.
      1guyin10
      • 1 Year Ago
      I\'m guessing that whatever their new people-mover is will go to Mexico since it would have more export potential.
      Drakkon
      • 1 Year Ago
      The headline makes it sound like there is a model called the Dodge Mexico.
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