03.10.2011 ALL CHANGE AGAIN AT MIRAFIORI

ALFA MITO
JEEP COMPASS 2011

The latest announcement today from Fiat sees plans for the next generation Jeep Compass (bottom, current model) to be built at Mirafiori, junked, while the Alfa Romeo MiTo (top) will continue to be built at the Turin plant.

With the future of the Mirafiori plant in Turin once again in the spotlight as rumours abound about the latest stalled deal to keep it alive, Fiat has once again changed its mind about the facility’s fate – this time, it proposes to build a ‘baby’ Jeep there, spun off Fiat’s B-segment architecture.

There had been much speculation in recent months that the previously-announced decision to build two new C-segment SUVs at the plant for Jeep and Alfa Romeo – having originally been switched to Mirafiori from an original intention to build them in the U.S. – would itself be reversed and the cars built in North America after all. North America is Jeep’s primary market, and it thus made sense to locate production in the region where most sales would be attained, while projected volumes for Alfa Romeo’s version were always on the optimistic side in any case. Off-the-record briefings had also suggested currency fluctuations could play a role. That decision now seems to have been confirmed, with Fiat confirming its intention to install “the most updated version of one of its three main architectures at Mirafiori on which various nameplates for its various brands will be produced” from 2012, with “commencement of production of the first nameplate, a Jeep SUV, is expected in the second half of 2013.”

That architecture will be the forthcoming ‘SUSW’ (Small US Wide) platform, a widened and US-compliant derivative of the ‘Small’ platform (which underpins, amongst other models, the Fiat Punto and Alfa MiTo). The SUSW architecture will debut on the new Serbian-built ‘Ellezero’ minivans, set to debut next year as a replacement for the Fiat Idea and Lancia Musa – themselves two of the three models currently manufactured at Mirafiori.

The future of Mirafiori has been in a constant state of flux since the first presentations outlining plans to integrate Fiat and Chrysler were outlined in 2009. A deal thrashed out with the unions at the factory foresaw a range of vehicles being spun off the C-Evo Wide/CUSW architecture, with the Jeep C-SUV, a replacement for the Compass/Patriot twins, set to be the first out of the blocks. Instead, all these plans now go out the window, and the proposal today considers the development of a new ‘baby’ Jeep to take the off-road brand into B-segment for the first time, along with the possibility of an in-house replacement for the Fiat Sedici crossover (the current version is contract-manufactured by Suzuki in Hungary). Also to be spun off SUSW will be the next-generation Alfa Romeo MiTo, with the statement issued in Turin today noting that “production of the Alfa Romeo Mito, including new and updated versions, is confirmed at Mirafiori.”

“This is an important step in our plans to re-industrialise our Italian manufacturing backbone in view of current market developments and the increased distribution reach provided by Chrysler Group,” said Sergio Marchionne, Chief Executive of Fiat and Chrysler Group, in a written statement. “This leading-edge architecture will allow us to provide the most updated platforms for the development of our brands, and more importantly, will allow us to access the full powertrain offerings of both Fiat and Chrysler.”

The big worry for the unions at Mirafiori is that this latest projected plan (in sum, set to consist of a Jeep B-segment, future Sedici, and the current and future MiTo) is unlikely to stack up in volume terms – or, even if it did, would not be able to sustain a plant of Mirafiori’s immense capacity. The saga over the historic plant’s future is doubtless set to undergo a further series of twists and turns before matters become clearer.

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