UPDATE 2-Mexico to build Fiat 500 to boost Chrysler

Newswire

* CEO sees production of 130,000 autos a year

* Fiat 500 to be produced for U.S., Latam sale

* 500 seen as key to Chrysler recovery (Recasts, adds details from news conference in Mexico City)

By Noel Randewich

TOLUCA, Mexico, Feb 8 (Reuters) - Mexico could produce up to 130,000 Fiat 500s a year, seen as key to the recovery of Chrysler in the United States, with a $550 million investment, Fiat Chief Executive Sergio Marchionne said on Monday.

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