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FCA Plans €5 Billion Move to Hike Production in Italy
Fiat Chrysler Automobiles NV intends to invest more than €5 billion ($5.7 billion) through 2021 to add new models at its plants in Italy in a bid to improve their capacity utilization.
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Fiat Chrysler Automobiles NV intends to invest more than €5 billion ($5.7 billion) through 2021 to add new models at its plants in Italy in a bid to boost their output.
The company says the initiative will involve 13 new or updated models spread across three factories in Melfi, Mirafiori and Pomigliano.
Bloomberg News notes that FCA’s North American operations accounted for 97% of the company’s profit in the third quarter of 2017. Meanwhile, the Italian carmaker has struggled for years to maintain jobs in Italy at its underperforming plants there.
FCA’s latest production adjustments reflect broad market shifts from cars to crossovers and from piston power to electrified powertrains that are affecting all mainstream carmakers. Similar concerns prompted production reassignments in the U.S. early this week by Ford and an announcement of multiple plant shutdowns by General Motors.
FCA’s plan drew praise from the head of Italy’s Fismic labor union, who cited the company’s commitment to its home production base.
The carmaker confirms earlier reports that among the new model assignments in its plan are an Alfa Romeo small crossover model for Pomigliano, an electric version of the Fiat 500 minicar at Mirafiori and the Jeep Compass small crossovers at Melfi.