Green light for Fiat 500X

Fiat has announced plans to produce both the 500X and a new baby Jeep model in Italy from early 2014, and both models are a good chance to be sold in Australia.

Confirmed as part of a 1 billion euro ($A1.26b) investment, production of both new MINI Countryman-rivalling SUVs will take place at Fiat’s Melfi plant, which will also manufacture a replacement for Fiat’s aged Punto from 2015.

The plan was revealed in Italy yesterday by Fiat Chairman John Elkann and Fiat CEO Sergio Marchionne, and marks a major shift in the Italian car-maker’s strategy away from building mass-market cars in Western Europe and towards higher-profit upmarket models.

To be built exclusively in Melfi, all three models will be based on Fiat’s new ‘Small Wide’ platform, which underpins the 500L people-mover, while the unnamed Jeep model will be produced only in all-wheel drive form.

Fiat says both the 500X and new small Jeep will be sold globally and, although it is yet to formally confirm right-hand drive production, Fiat Chrysler Group Australia already has its hand up for both models.

“If they are made available to us then certainly they are models we’d love to have in Australia,” FCGA Corporate Affairs Director Lenore Fletcher told motoring.com.au.

“Given all 500 models are made in right-hand drive we see no reason why the 500X wouldn’t be, but right now we’re concentrating on models that will be produced for us in 2013.”

Fiat said its investment at Melfi will make the Italian plant one of the world’s most advanced, following the installation of 500 new welding robots, a new paint shop, new panel stamping facilities and new assembly area, which together will have the capacity to produce 1600 vehicles per day with three shifts.

It said the factory rebuild will result in production lines flexible enough to produce up to four models, suggesting a fourth 500L-based model could eventuate in 2016, by which time the car-maker has promised to introduce 19 ‘made-in-Italy’ models, including nine new Alfa Romeos and six Maseratis.

While the 500L is already produced in Serbia, Fiat is eventually expected to build all of its low-cost models, including the Panda and smaller 500 vehicles, outside Western Europe to reduce costs.

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