Fiat-Chrysler Joint Venture to Invest EUR 1 Bn in Mirafiori Plant

During a meeting this morning in Turin between Fiat and its four unions, the carmaker announced it intents to establish a EUR 1 billion (US $ 1.32 billion) joint venture with Chrysler, beginning the production of larger segment passenger cars and SUVs using a Chrysler-sourced platform. Originally designed as the base for the Giulietta, the platform was further developed by Chrysler and will be shared for development of all future compact and mid-size passenger cars and SUVs.

Models produced at the Mirafiori plant will also be exported outside the European Union, with more than half of the production volume going offshore, especially to North America. Fiat and Chrysler will contribute to the EUR 1 billion investment proportionally, according to volumes produced for each brand.

The Mirafiori plant will have the capacity of producing up to 1,000 vehicles per day or about 250,000-280,000 models per year. Fiat also added that the relaunch of the Mirafiori plant might create new jobs.

Fiat CEO Sergio Marchionne said he wants to commence the project as soon as possible, as rapid implementation would allow reconfiguration of the plant in time for the launch of the future Jeep and Alfa Romeo models, scheduled for the third/fourth quarter of 2012.

"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," said the company in a statement.

"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."