DaimlerChrysler announced Wednesday that it will invest $1 billion to upgrade its Toluca plant west of Mexico City. Included in the upgrade is a pair of new industrial parks to be created in a joint effort with its suppliers.

The plant currently makes Chrysler's PT Cruiser. The upgrade includes new robotics and a new body shop to give the plant the flexibility to respond rapidly to changes in market demand.

Chrysler COO Eric Ridenour pointed to the support of the union and Mexico's government as key reasons for the company's decision to invest in its Mexico operations.

UPDATE: The one-millionth PT Cruiser was built this week at the Toluca plant in Mexico.

[Source: Reuters]

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