Chrysler is expanding its engineering and procurement activities in eastern Europe, Latin America and other emerging economies as part of a drive by the Detroit-based carmaker to raise its profile outside North America.
Frank Klegon, Chrysler's head of product development, said that these initiatives, as well as a previously announced $3bn investment in new engines, have been approved by Cerberus Capital Management, the private-equity group that took control of the carmaker last week.
The strategy points to Chrysler's determination to diversify outside North America under its new owners.
The company is in the process of setting up an engineering and procurement unit in Warsaw, and plans to expand a vehicle development centre in Mexico to serve Latin America.
It is also assigning a few dozen experts to its operations in China, where it has signed a joint venture with Chery Automotive to produce small cars both for the Chinese market and for export.
It employs 150 product-development engineers under contract in India.
The Warsaw operation will initially focus on seeking low-cost suppliers. Mr Klegon said that Chrysler would probably seek a partner if it were to consider vehicle production in eastern Europe.
While Chrysler was concerned by the rash of defective Chinese products, Mr Klegon said that he was optimistic that a local presence would ensure quality standards. "It's important that we maintain the intellectual quality as much as possible to get the product we want," he said.
North America at present makes up about 85 per cent of Chrysler's sales, but foreign sales have risen sharply over the past year to a record 22,900 vehicles in June. Eight Chrysler, Dodge and Jeep models are being launched outside North America this year.
The company has licensed China Motor and Fujian Motor to build minivans in China. A joint venture is due to start production of the Chrysler Sebring saloon in China this year.
Chrysler has also licensed Russia's GAZ to build Sebring and Dodge Stratus saloons, using engines produced by a Chrysler plant in Mexico.
Mr Klegon disclosed that it planned to build a diesel version of its light pick-up trucks in North America as part of a drive to improve its vehicles' fuel efficiency. It is investigating production of a four-cylinder diesel engine
