Fiat SpA plans to drop $12.3 billion to breathe new life into the company’s sluggish sales in Europe. The plan is to put the Italian automaker back on the road to profitability with annual losses ending within the next three years.
The company plans to focus on jump starting the sales of its 500 subcompact and Panda small car as well as its pricier Maserati and Alfa Romeo lines, according to reports. In the past, Fiat said it planned to develop 20 new models for Europe by 2016, including eight Alfa Romeos. However, the company has repeatedly begged off providing any updates on its strategy, saying only it will provide more insight second quarter of 2014.
In addition to the aforementioned products, it’s also introducing a lineup of Jeeps next year that will be built in Italy. Also expected is the replacement of the Fiat Punto with a five-door version of the 500, which will likely be built in Poland to save on labor costs. Wages for auto workers there are 75% lower than those in Italy. (more…)