Fiat May Move Production of 350,000 Vehicles to North America

It seems Alfa Romeo is likely to make a North American comeback, at least in a factory setting. Fiat is reportedly moving production of 350,000 Alfa Romeo, Fiat, and Lancia vehicles to North America.

According to a report in Italian newspaper la Repubblica, Fiat plans to produce several Alfa Romeo, Fiat, and Lancia models in North America in order to lower production costs. Production of the three brands will add up to over 350,000 units. The move is enabled by Fiat’s tie-up with Chrysler and is part of the Italian giant’s strategic 2010-2014 business plan.

In addition to bringing vehicle production to North America, Fiat is said to be cutting 5000 Italian factory jobs. The job cuts will occur in three different factories around Italy and represent roughly 16 percent of Fiat’s 30,000 Italian factory workers. Despite the layoffs, part of the plan calls for Fiat to boost Italian production by 50 percent to around 900,000 units annually.

The last part of Fiat’s cost-reducing business plan calls for a reduction in the number of models it produces. Fiat currently produces 12 different models, but will trim this to eight to help bring costs in line.

Source: Reuters

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