Fiat to produce Jeep subcompact and 500X in Italy

Fiat has announced that it will be investing more than €1 billion ($1.3 billion USD) to build subcompact SUVs for Jeep and Fiat in Italy. Fiat’s Melfi plant will begin production of the Jeep brand vehicle and a new Fiat brand vehicle in 2014.

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“The first of the two new models will be a Jeep utility vehicle that represents the brand’s entrance into a new market segment,” Fiat said in a statement. “Melfi will be the only plant in the world to produce this model and, as for all Jeep products, it will be sold in markets worldwide.”

The Jeep model will be joined by the Fiat 500X, the latest addition to the 500 lineup.

Fiat said that once the plant upgrades are complete, Melfi will have increased flexibility with the ability to produce up to four different models on the same assembly line.

– By: Omar Rana