Fiat may shift SUV production to United States from Italy

2011 Fiat Freemont

Not that this will make any difference to your life as an everyday enthusiast, but Fiat SpA is considering shifting production of Jeep and ALfa Romeo SUVs from its oldest plant in Turin to North America. Instead of producing SUVs at the Turin plant, Fiat plans on building a small city car.

What’s the reason? It’s cheaper for Fiat to build a small car at the plant after the strengthening euro against the dollar made the possibility of building SUVs mainly destined for the U.S. a less competitive option in Europe, a source said.

While no decision has been made, Fiat announced last November that it will invest 1 billion euro ($1.44 billion) to produce around 280,000 Jeep and Alfa Romeo SUVs at the Turin plant starting in the fourth quarter of 2012.

Since then, the euro has gained about 9 percent against the dollar.

– By: Omar Rana

Source: Automotive News