US-built Alfas and Fiats to be built in North America and sold in Europe

Chrysler will build Alfa Romeos in North America for European markets, resulting in 5000 job cuts in Italy, according to a report.

Automotive News Europe is reporting that the move will affect jobs in three Italian plants and around a quarter of the firm's workforce there.

The Chrysler plant where the Alfas will be built has not been named, but it will be in North America and build cars for that market and Europe. It is expected it will build the 159 replacing Giulia saloon and estate, a new large crossover and a rear-drive Alfa 166 replacement.

It has previously been confirmed that Chrysler will build Chrysler and Dodge vehicles to be sold in Europe as rebadged Fiats and Lancias in plants in the US, Canada and Mexico.

In addition, the 300C saloon, Sebring saloon and cabrio and Voyager minivan will be rebadged as Lancias and sold in Italy from 2011. They will also be sold as Chryslers outside Italy.

The Dodge Nitro will be rebadged and sold in Europe by this year, and the Journey crossover will bgo on sale in Europe in spring 2011.

The move is part of a rationalisation of Fiat's operations in Italy; its five plants currently built 14 different Alfa, Fiat and Lancia models, but that will decrease to nine models in 2012.

In addition, Fiat has already said it will close its facility at Termini Imerese, Sicily at the end of 2011, at the cost of 1400 jobs.

Fiat said in a statement that media speculation about its future product plans was "premature and groundless."

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Comments
17

24 March 2010

Wow. A potentially explosive development. What's the rationale? Lower labour costs? Better quality? Sounds odd whichever way you look at it.

24 March 2010

[quote tonym911]Wow. A potentially explosive development. What's the rationale? Lower labour costs? Better quality? Sounds odd whichever way you look at it.[/quote]

F.I.A.T. has apparently changed its name to in future stand for Fabricated in America Totally.

PS Has no one told the 'genius' boss Marchionne that the euro is going through the floor currently against the US dollar? Exporting cars back to Italy from the US just got much less attractive.

24 March 2010

[quote tonym911]What's the rationale[/quote]

Chrysler are etter equipped to deal with bigger cars, conversely Fiat are better equipped to handle smaller cars.

Cars like the new 300c and Charger when released later this year, will outsell the Alfa 166 by a large margin, so it makes sense for them to add production of the 166 to the same assembly plant that makes the 300c and Charger. SImilarly, A completely refreshed sebring and Avenger are due later this year, and again, due to the buying power of N. America, these cars will probably outsell the alfa 159, so this car could also be moved over to Chrysler (although they might wait until the new Sebring/Avenger/159 platform share in 2012 I think). Apparently Chrysler are to handle all cars alfa 159 sized and bigger, while Fiat will do the smaller stuff.

So in a year or so when Dodge and Jeep have some smaller vehicles, based on Fiat platforms, Fiat will pick up production of those models. Seems pretty logical to me.

24 March 2010

Mr Obama's spending package strikes again - more jobs for America, less for Europe.

24 March 2010

Logic's one thing but I suspect emotion will play a big part in this story.

24 March 2010

"The move is part of a rationalisation of Fiat's operations in Italy; its five plants currently built 14 different Alfa, Fiat and Lancia models, but that will decrease to nine models in 2012".

Based on a policy of Chrysler building Alfa's and trying to sell US built Chryslers as Fiats and Lancia's, the company may soon be building no models by 2015.

24 March 2010

I think I'm about to shed a tear on Lancia's behalf, rebadged Chryslers including the Sebring of all things? Oh dear!!!!

24 March 2010

If Mercedes and BMW can provide us with cars we continue to perceive as German in spite of being manufactured in the USA and RSA I'm sure Alfas can be manufactured in the USA without losing their Italian soul.

The big stumbling block will be the powerful Italian unions and the please the electorate at all costs, criminal Berlusoni.

24 March 2010

What a wonderfull world :-|

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