Chrysler Group is planning to build the Fiat 500 small car at a plant in Mexico, according to a report published Monday.
The automaker could also build an engine for the 500 at a plant in Trenton, Mich., and is weighing building another compact car similar to the 500 in the U.S., according to The Wall Street Journal, which cited anonymous sources familiar with the matter.
Chrysler spokesman Gualberto Ranieri declined to comment Monday.
Italy's Fiat Group took a 20% stake in Chrysler earlier this year as part of the automaker's exit from bankruptcy protection. The company has also received billions in loans from the federal government, which owns an 8% stake in the company.
Fiat, as part of its purchase, had announced plans to bring the hugely popular 500 to the U.S., along with the Alfa Romeo brand and Fiat-designed compact and midsize cars. The Italian automaker also plans to bring engines, transmissions and other technologies to Chrysler.
Chrysler operates an assembly plant in Toluca, Mexico, that builds the PT Cruiser sedan and Dodge Journey crossover and employs more than 2,100 workers organized under a Mexican union. The company also has a truck assembly plant in Saltillo, Mexico.