Fiat to keep SUV production in Italy: Report

MILAN: Automaker Fiat SpA will keep production of Jeep and Alfa Romeo sport utility vehicles (SUVs) in Italy rather than

The new 22-member joint management team for Fiat and US automaker Chrysler did not discuss moving production of the SUVs from Fiat's Mirafiori plant at Turin during a meeting last week, the daily said without citing sources.

Fiat also will not make the Topolino subcompact at the Turin plant, the paper said. A Fiat spokeswoman had no comment.

The Bloomberg news agency reported last week that Fiat may shift production and make a subcompact at Mirafiori instead.

A source close to Fiat said last week the car maker did not rule out the possibility of moving the SUV production. Fiat is assessing the impact of the euro-dollar exchange rate on making SUVs at the Turin plant, the source said.

Last year Fiat and Chrysler said it would invest 1 billion euros to build as many as 280,000 vehicles a year at Mirafiori, including Jeep and Alfa Romeo models to begin production before the end of 2012.

Fiat owns just over half of Chrysler.

At its meeting, the management group also discussed new products, including the Lancia Delta, Corriere della Sera said. Fiat has picked actress Jennifer Lopez to be the spokeswoman for its 500 model, the paper said.

Copyright Reuters, 2011

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