Chrysler to Build 500 in Mexico, for Mexicans?

I have no idea how Chrysler is going to survive. In fact, I assume the feds saved ChryCo from the grim reaper knowing full well the dying domestic didn’t have a hope in hell of recovering, just to help out their pals at Cerberus, I mean, save the US economy from total collapse. Or something. Anyway, Fiat ended-up paying bupkis for some pretty juicy assets. Jeep much? Chrysler also has some modern production facilities, including a plant in Toluca, Mexico. Today’s story in the Wall Street Journal, “revealing” Fiatsler’s plans to build the Fiat 500 down South is something of a non-story. Our pals over at Inside Line called that one way back in January. But it’s worth repeating: An American Fiat 500 is a non-starter. We reckon a hecho en Mexico 500 will be built by Mexicans for Mexicans. Or, as Edmunds puts it . . .

Fiat already has a major presence in Brazil, but it’s not much of a player in Mexico. And undoubtedly it would like to be. We’d bet that buyers in Mexico are apt to be much more receptive to subcompact Fiat 500s, Pandas and Grande Puntos than, say, U.S. consumers. In addition, meeting crash and emission standards is also likely to be a much simpler proposition in Mexico than the U.S.

Today’s “leak” comes complete with a bone for U.S. UAW workers/taxpayers who might greet the news that Chrysler is using billion of American bailout bucks to help Fiat gain a toehold in Mexico:

Chrysler is also looking at making a small Fiat engine for the 500 at a Chrysler plant in Trenton, Mich., and is considering building a Fiat-derived compact car slightly larger than the 500 in the U.S., a person familiar with the plans said.

In other word, the 500 per se will never make it north of the border. And that “consideration” of a U.S. engine plant will eventually give way to no way jose. Which is just as well, as only a few American diehards would have bought it. Building and selling a small car in the US market made a good story, though.