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March 08, 2006 01:04 PM ET
Daimler to Invest $1B in Mexico Operations

All Associated Press NewsNEW YORK (AP) - German automaker DaimlerChrysler AG said Wednesday it will invest $1 billion in its Mexican manufacturing and supplier operations to modernize the facilities and build new industrial parks for suppliers.

The investment, jointly announced by Mexican President Vicente Fox and Chrysler Group chief operating officer Eric Ridenour, includes upgrades to the Toluca Assembly Plant, the construction of two supplier parks and additional operational improvements.

The expansion and renovations, most of which will take place in 2006, will allow the Toluca facility the flexibility to manufacture similar models on one assembly line, officials said.

The supplier parks, which will be jointly built and funded, will enhance plant operations and focus on increasing modular assembly systems.

DaimlerChrysler shares fell 27 cents to $54.13 in midday trading on the New York Stock Exchange.