Fiat and Chrysler plan on building Alfa Romeo and Jeep brand models for global distribution as a part of a new joint-venture that will take control over Fiat’s Mirafiori plant in Turin. Fiat and Chrysler will invest more than $1.3 billion to retool the factory hat will produce mid-sized Giulia sedan and station wagon and medium SUVs for the Alfa and Jeep brands.
Fiat is spending 20 billion euros through 2014 to improve factories and vehicles in exchange for union concessions on work rules.
Fiat said that output will start in the third or fourth quarter of 2012 and that half of the production will be sold in Europe and the other half will be exported mostly to North America.
The increase in production will bring the plant’s output to 250,000 to 280,000 units a year. The Mirafiori plant made 178,500 cars in 2009.
– By: Omar Rana
Source: Automotive News (Subscription Required)