Fiat Will Invest 9 Billion Euros In European Recovery

Fiat Will Invest 9 Billion Euros In European Recovery

Fiat plans to invest 9 billions euros in the development of new models to recover lost ground on the European market. The Italians want to end the string of losses which already reached the third consecutive year, in addition to revamping the factories in the country.

The current CEO of Fiat, Olivier Francois, said the brand will divide the range into two different concepts: the 500 and Panda. While the 500 model will target the aspiring side, linked to the right brain hemisphere, the Panda will be a functional model that will attract customers who are completely different from those who choose a 500.

Among the future plans of Italian brand, announced by the sources cited by Automotive News, we have the Punto successor, a five-door version of the 500, which will be built in Poland, and will have an advantageous profit margin. Fiat factories in Italy will produce two SUV of the B segment with a common platform but with different design. The Italians would use the same platform for a model that combines features of 500 with an SUV for a model that will be sold under the Jeep brand, the latter relying on the idea of ​​off-roader.

Since 2011 Fiat lost about two billion euros in Europe. In the first 9 months of this year, the Italian’s losses are estimated at 304 million euros. Sergio Marchionne, Fiat CEO, says he does not plan to close Fiat factories, preferring to adapt production capacity to meet market demands.

“We will utilize what we have in defense of what we have,” said Marchionne. “We will not be shutting down plants. We will shift our production capacity in accordance with our premium brand strategy.”

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