It’s nice to see the Italians and Americans working together. Fiat and Chrysler Group LLC announced today that they will build a total of 280,000 compact SUVs a year for the Alfa Romeo and Jeep brands starting in 2012. The move is part of a new joint venture that will operate at Fiat’s Mirafiori plant in Turin. The project includes a retooling investment at the plant for a total of $1.78 billion.
The joint venture will see the production of the first Alfa SUV in 101 years and a replacement to the Jeep Compass and Patriot. The Alfa SUV will be aimed at the Audi Q5, BMW X3 and the Mercedes-Benz GLK a Fiat spokesman said.
Production of the SUVs will start in the fourth-quarter of 2012. Half of the 280,000 SUVs that will be produced in Turin will be sold in Europe and the other half will be exported to North America. The spokesman said that Jeep expects to take 150,000 units a year while Alfa will get 100,000 to 130,000 units.
– By: Omar Rana
Source: Automotive News