Fiat to unveil plans to make new Jeep and Fiat SUVs in Italy

MILAN Thu Dec 13, 2012 10:58pm IST

A company logo is seen on a Fiat car displayed on media day at the Paris Mondial de l'Automobile, September 28, 2012. REUTERS/Christian Hartmann

A company logo is seen on a Fiat car displayed on media day at the Paris Mondial de l'Automobile, September 28, 2012.

Credit: Reuters/Christian Hartmann

MILAN (Reuters) - Italian automaker Fiat FIA.MI will unveil long-awaited plans next week to build two small sports utility vehicles (SUVs) in Italy, the company said on Thursday.

The announcement to be made by Chairman John Elkann and Chief Executive Sergio Marchionne marks the end of the company's investment freeze in its home market, where demand has dropped to levels not seen since the 1970s.

Fiat's mass-market brands are losing money in Europe and the company is profitable thanks only to revenue from its Chrysler division in the United States.

Fiat pledged in October to cut losses in Europe by increasing spending from 2013 to 2015, shifting the focus to its higher-margin brands Maserati and Alfa Romeo.

The new plan calls for three new models to be built in Italy next year and six new models in 2014.

The two new small SUVs are expected to be a Fiat and a Jeep, union sources told Reuters on October 31, and will be built at Fiat's Melfi plant.

Fiat first announced that it would build a Jeep SUV in Italy in October 2011 and had slated it for production in the second half of 2013.

(Reporting by Jennifer Clark; Editing by David Goodman)

Reforms Push

REUTERS SHOWCASE

Reuters Exclusive

Reuters Exclusive

India looks to sway Americans with nuclear power insurance plan  Full Article 

To Boost Growth

To Boost Growth

Crank up public spending to revive growth - chief economic adviser.   Full Article 

Bold Steps

Bold Steps

SpiceJet rescue plan marks bold bet on Indian aviation recovery.   Full Article 

New Airline

New Airline

Tata, Singapore Air venture Vistara to take off on Jan 9.  Full Article 

Online Sales

Online Sales

Knock knock. Who's there? Amazon's best-selling holiday author.  Full Article 

26/11 Plotter

26/11 Plotter

Pakistan to challenge bail for Mumbai attack "mastermind".  Full Article 

Chinese Economy

Chinese Economy

China revises up size of 2013 economy, sees no effect on 2014 growth.  Full Article 

Reuters Poll

Reuters Poll

BSE Sensex to hit 32,980 by December 2015  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage