Fiat Prepares To Pull Affordable Car Production Out Of Italy

In his final move to transform Fiat Chrysler Automobiles NV, Chief Executive Officer Sergio Marchionne is going back to the very place where it all began: Italy.

The CEO is preparing to unveil on June 1 a sweeping transformation of production in Italy that will see the company abandon the manufacture of the budget Punto and Mito cars in favor of upscale models, according to people familiar with the plan. A historic plant in Turin and another near Naples will be retooled to produce new Maserati and Jeep SUVs, while Panda output will be moved to Poland, said the people, who asked not to be named because the project isn’t public.

TomM - 5/19/2018 6:22:55 AM

+2 Boost

Jeep is already THE (profitable) Brand at FCA. They know it - and they put more effort into that and Alfa - than any of the rest.

However - NOW that FCA is a far more Worldwide company - not an Italian specialist anymore (Fiats - while sold around the world - are no longer the big sellers outside Italy that they once were) - going to CHEAP production is Exactly what CannadianComments said it is - a play for profits. MATT is hopelessly behind the times on this one.

MDarringer - 5/18/2018 6:31:02 PM

0 Boost

Moving even more Jeep production is deeply offensive.

CANADIANCOMMENTS - 5/18/2018 7:25:28 PM

0 Boost

No different than Toyota moving Camry production to Mexico from Canada or the USA. Margin management dictates a lower cost of labour is required to eke out as much profit as you can from these lower priced vehicles.

MDarringer - 5/18/2018 8:00:45 PM

+1 Boost

It's totally different and you know it.

CANADIANCOMMENTS - 5/19/2018 12:27:51 PM

0 Boost

Actually, it was Toyota Corolla production that got moved, not the Camry. My bad. And yes this decision was all about gross margin and labour rates. Eastern Europe is like Mexico for EU makers. Much lower cost of production but still close to major markets.

Foncool - 5/19/2018 7:13:31 AM

+1 Boost

All will be known June 1........who will be Marcchione’s replacement?.......will Maserati and Alfa be spun off? ..........is FCA being sold?...... As a whole or just Chrysler brands?......To Koreans? Chinese? Etc? Inquiring Minds want to know.

MDarringer - 5/19/2018 2:52:07 PM

-4 Boost

1. Hire Alan Mulally

2. No one would want Maserati and Alfa Romeo for anything but their names and their products are not good enough to spin them off into a company.

3. I predict a restructuring and a "merger of equals" i.e. buyout. Hyundai/Kia is an especially good choice.