FCA’s Melfi Jeep Plant Heading for Record Output

Fiat Chrysler Automobiles NV expects its factory in Melfi, Italy, will produce a record 400,000-plus Jeep Renegade SUVs and Fiat 500X crossovers this year, Automotive News Europe reports.

The plant currently operates around the clock six days per week and for 16 hours on Sundays. FCA has added nearly 1,500 fulltime workers at the facility since January and has twice increased output in the past 12 months, according to ANE.

Melfi’s success is a stunning turnaround for the facility. In 2010-2011 the factory was struggling with labor strife and low productivity. Fiat CEO Sergio Marchionne threatened to relocate capacity outside Italy unless its unions agreed to significantly improve efficiency.

When the unions agreed to limit strikes, reduce work breaks and add shifts, Fiat reciprocated by investing €1 billion to retool the complex for the Jeep and Fiat models. Production of the new vehicles began in August 2014.