Continental AG canceled the start of operations of the auto parts factory for Chrysler built in 2008 with $62 million.
The United States automotive crisis and the consequent decline in demand for high-tech devices that the plant would have made forced Continental AG to close the factory that had not yet begun operations.
A decision by Germany's Continental AG to invest in Costa Rica rather than Mexico shows that Costa Rica has got what it takes to become a regional leader of the auto industry, senior officials said.
Continental is investing US$61.5 million in a plant to make electronic components for car transmissions that will employ 600 workers in Costa Rica. Earlier it had considered locating the plant in Mexico.
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