By on November 26, 2010

The rescue of Chrysler is making great strides. Sergio Marchionne today presented union officials an audacious plan. Powered by an investment of $1.3b, Chrysler and Fiat will build Alfa Romeos and Jeeps under one huge roof. The roof is in Mirafiori, Italy. Also known as the Fiat factory in Torino. And who will pay for all that? Fiat will pay 60 percent. Chrysler will pay 40 percent.

That factory currently makes the Fiat Idea, Multipla und Punto Classic, along with the Alfa MiTo, and the Lancia Musa. Last year, 178,000 units were built here. After the huge investment, the capacity will leapfrog to an astounding 250,000 to 280,000 units per annum, reports Automobilwoche [sub].

5,400 Italian workers will build 150,000 Alfas and 100,000 Chryslers there. First will be the Made-in Italy Jeep Compass/Patriot. Alfa will also get an SUV, which probably will share a good deal, if not most of the technology. Half of the total volume is destined for Europe, the other half will be exported, “mainly to the U.S.A,” says Automobilwoche. The cars sit on the new Compact Wide platform, a derivative of current Fiat technology.

By the way, Marchionne announced a $26b investment plan between now and 2014. He’ll spend the money if the unions play ball. The Italian unions. Expect more Chrysler contribution to the great rejuvenation of the Italian automobile industry.

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14 Comments on “Fiat And Chrysler Invest Big Into New Plant. In Italy...”


  • avatar
    lilpoindexter

    A FIAT-made Jeep? Sounds like a plan!

  • avatar
    HerrKaLeun

    didn’t Fiat plan to close plants in Italy and use more of their Eastern European capacities because of the union issues?
     
    and building up more capacity, isn’t there the overcapacity issue? (the current shortage of VW etc. is caused by suppliers, not by final assembly capacity problems)

  • avatar

    Wonder, what FIAT is going to do with the Iveco Massif (c.f. http://en.wikipedia.org/wiki/Iveco_Massif)?
    Sell them alongside?

    • 0 avatar
      Robert.Walter

      rumour is that fiat sa will sell the truck and farm equipment divisions to fund recovery of the car empire…

    • 0 avatar
      Stingray

      Mr Walter, IIRC, Fiat Group is going to spin off Iveco and New Holland to gather cash. In fact, such operation should happen beginning 2011.

      I didn’t understand that move. In the end, maybe Iveco is going to end swallowed by Mercedes, Volvo or VW. They have some real solid product in the Daily and the EuroCargo

  • avatar
    rasmusdf

    TTAC seems to forget the other Chrysler investment news, in the US of A:
     
    http://www.autoblog.com/2010/11/25/chrysler-confirms-843m-investment-in-kokomo-in-plants/

  • avatar

    I don’t get the idea behind. Both BMW and Mercedes are producing their big SUVs in the US, presumably to be nearer to the (main) customer.
    FIAT is up to do it the other way round. Why? Magna in Austria which did the production for Chrysler for the last ten years or so is out of the game. OK. These Austria-produced Chryslers were very expensive (double the US price), BTW.
    But how will an Italian-based manufacturing be cheaper and more competitive, given the investment costs? The idea to export Jeeps from Italy to America seems to be a new way of “carrying coals to Newcastle”. Are they going to offer a free 4×4 Panda as an incentive for an US buyer?

  • avatar
    Lorenzo

    Sergio just blasted Italian unions on Italian TV and caused a firestorm of controversy. I think he’s dangling the Alfa/Jeep plant as a carrot to get Italian unions to shape up or lose jobs, and also to deflect blame from himself and Fiat if the unions don’t respond and he cuts Italian jobs.

  • avatar
    th009

    Building 150,000 Alfa SUVs/crossovers per year?  Who will buy them all?  The TOTAL Alfa sales are only 100,000 per year today …
     
    Some of these Fiat press releases really need a reality check.

  • avatar
    PeriSoft

    If the picture is courtesy of carspyphotos.com, why does it have a big Autoblog watermark in it?

  • avatar
    Robert Schwartz

    Honda says it gets about 100 cars/year for each employee at its North American Plants.
    http://www.hondanews.com/channels/corporate/releases/b0ee535c-8427-2b95-ec49-92004c34ba32
     
    280,000 vehicles from 5400 employees is only 51.
     
     

  • avatar
    windswords

    So let’s see if I got this right. When Japanese companies build plants here in the US to make Japanese designed and engineered cars to sell to Americans that’s good. But when an American company with a minority European ownership stake takes a plant in Europe to make American designed and engineered cars to sell to Europeans that’s bad. Ok, got it.

  • avatar

    @windswords: “…But when an American company with a minority European ownership stake takes a plant in Europe to make American designed and engineered cars to sell to Europeans that’s bad. Ok, got it.”
    No, you didn’t get it.
    The question simply is, how does this compute. No need to waive any flags.
     

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