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Christopher Bruce2013-01-25 14:55:52

Fiat's Union Agrees to Layoffs at Melfi Factory

Will be restructured to build new Jeep

The move is part of Fiat's plan to grow the 500 out as a range of cars

Fiat'sFiatFiatItaly, 1899 > present159 models
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union has agreed to accept temporary layoffs from two production lines at its Melfi factory to allow it to reconfigure to produce the Fiat 500X and a shared JeepJeepJeepUnited States of America, 1941 > present33 models
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platform in 2014. Fiat estimates it will cost €1 billion ($1.34 billion) to upgrade the factory to build the new models. Work will start on the changeover on February 11 and could last in 2014. 

"Fiat said production could likely start at the end of 2013, early 2014," said union spokesman Giuseppe Giordano.

The Jeep model is still un-named, but it will share a platform with the 500X crossover. The Jeep will be slightly upmarket compared to the 500X and only be available with all-wheel drive. It will be sold in Europe, North America and Asia. 

The PuntoGrande Punto - Punto Evo Gen.3Fiat Grande Punto - Punto Evo Gen.3Italy, 2012 > present32 versions
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will continue to be built at the factory during the changeover. 

Building Jeeps in Italy, which are relatively more popular worldwide than Fiats, mean that Fiat can take up capacity in its factories to not have fire workers. 

Source: Automotive News Europe





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