Fiat To Build Jeep Compass Replacement in Italy

TURIN, Italy — Fiat and Chrysler said they plan to form a joint venture to invest more than $1.3 billion in Fiat's aging Mirafiori plant here, to build future Alfa Romeos and Jeeps — including replacements for the Compass and Patriot — for global distribution, beginning in late 2012.

Fiat, which owns 20 percent of Chrysler and has management control of the U.S. automaker, said the plan is to bring "a new platform from the U.S. to produce cars and SUVs for the Jeep and Alfa Romeo brands."

According to Automotive News, those models will include the midsize Alfa Romeo Giulia sedan and wagon, which are slated to replace the Alfa Romeo 159 and will be sold in both Europe and North America.

Mirafiori also will build midsize SUVs for Alfa Romeo and Jeep, the publication said. Alfa Romeo is targeting the Audi Q5, BMW X3 and Mercedes-Benz GLK.

All models will be built on a new Compact Wide architecture derived from Fiat's Compact platform, which underpins the Alfa Romeo Giulietta, Automotive News said. The Compact Wide architecture is being jointly engineered in Italy and North America.

The Mirafiori plant currently builds a wide range of vehicles, from the Fiat Multipla minivan to the Alfa Romeo MiTo hatchback. Its annual capacity will be increased from 250,000 to 280,000 units.

Inside Line says: Fiat hopes the new Compact Wide architecture will be robust enough to eventually accommodate a wide range of vehicles to be sold worldwide under the Chrysler, Dodge, Jeep and Alfa Romeo brands. — Paul Lienert, Correspondent