Fiat has announced plans today (26 November) to establish a EUR1bn (US$1.32bn) joint venture between Chrysler and Fiat to bring a new platform to its Mirafiori Turin plant from the US for production of larger segment passenger cars and SUVs for the Jeep and Alfa Romeo brands.
News of Fiat’s intentions comes after a meeting this morning in Turin between Fiat and its four unions, with the Italian manufacturer stressing it needed the support of its labour bodies and employees to “guarantee the plant the necessary level of competitiveness, productivity and operational flexibility.”
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The platform was originally designed as the base for the Giulietta and further developed at Chrysler and is to be shared by the two groups for development of all future C & D segment passenger cars and SUVs.
Models produced by the new company at Mirafiori will also be exported outside the European Union. More than half of production will be for international markets, particularly North America.
More than EUR1bn in investment is planned, to be split between Fiat and Chrysler in proportion to volumes produced for each brand.
Bringing this new platform to Mirafiori will result in potential production of up to more than 1,000 vehicles per day or some 250,000-280,000 models per year. Fiat adds there may be potential for new jobs.
Fiat CEO Sergio Marchionne said he wanted to start the project immediately, as rapid implementation would enable the plant to be reconfigured in time for the launch of the future Jeep and Alfa Romeo models, planned for the third/fourth quarter of 2012.
A Fiat statement noted: “This is an extraordinary opportunity for Italian industry to produce cars of quality and prestige. Mirafiori has all the elements necessary to achieve a leap of quality and become a world class plant, producing cars for Europe, North America and other markets around the world.
“This project is the first tangible example of the benefits brought by the Chrysler alliance to Italian operations and it is significant that it should take place at Mirafiori, the symbol of this nation’s industrial and automotive culture.”
Reaction to the deal by Fiat unions is expected later today.
