Fiat may shift SUV production from Italy to North America

Article by Christian A., on September 1, 2011

Fiat S.p.A. may transfer planned production of Alfa Romeo and Jeep SUVs to North America from its oldest facility in Turin, a person familiar with the situation disclosed, adding that the company may build a small urban vehicle at the factory instead.

According to the insider who refused to be identified before an announcement is officially made, the company may manufacture a small vehicle at the Mirafiori facility after the euro gained strength against the dollar that made the possibility of building SUVs mainly destined for the U.S. a less competitive option in Europe.

However, a decision has not been made final yet, the insider source stated, says Autonews. Last November, the company disclosed to the public an investment of 1 billion euro ($1.44 billion) to make as many as 280,000 units of Alfa Romeo and Jeep vehicles at the Mirafiori plant beginning the fourth quarter of next year.

The euro has gained around 9 percent versus the dollar since then, increasing the cost of manufacturing vehicles in Europe that are meant for the U.S. market.

Analyst Marco Santino from AT Kearney commented that it makes a lot of sense from a product-mix point of view. He added that the U.S. would keep knowledge of SUV manufacturing, helping the launch of Alfa Romeo in North America.

He further explained that it would be a more competitive product because of the production costs. The automaker may talk about the compact vehicle in Turin when CEO Sergio Marchionne holds the first meeting of single management team for Chrysler and Fiat, the source mentioned. A Fiat spokesperson confirmed the meeting but refused to give comments regarding the production plan.

If you liked the article, share on:

Pin It

Comments

Recommended

Has Toyota started the production of a new electric supercharger? Well, a patent that was recently published indicated that they might have. And this electric supercharger looks more durable and...
by - March 27, 2017
The Tesla Model S has finally arrived in South Korean soil and is now available for test drive. But, there’s a catch. You’ll have to wait several months if you...
by - March 27, 2017
Sorry to say this to the Sport Quattro Concept fanatics. If you guys have been hoping for the production of this iconic concept to begin, prepare for your dreams to...
by - March 27, 2017
South Korean car company SsangYong recently revealed sketches of their upcoming SUV. We’re not always impressed by Korean car designs, but this one looks quite promising. Yup, it is the...
by - March 26, 2017
Twenty-eight years after the company was first launched by Toyota, which was initially targeted to the United States market only, Lexus has already made its way to over 70 countries....
by - March 26, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries