Report

Jeep to Build SUV on Alfa Romeo Platform

Chrysler will invest $1.7 billion in the new car and will add 1,100 jobs at the Toledo, Ohio plant.

Cooperation between Chrysler and Fiat continues to strengthen, as just last week Sergio Marchionne, the CEO of both companies, announced that Jeep will build a SUV based on an Alfa Romeo platform. Alfa has never produced an SUV, though eight years ago it displayed a crude concept SUV, called Kamal. It happened before Marchionne's time at Fiat, but the Kamal was quickly forgotten about as fast as it debuted.

The new Jeep SUV will reportedly be based on the platform of the Alfa Romeo Giulietta, which is a five-door hatchback that Alfa sells mainly in the European market. Chrysler will invest $1.7 billion to development the new Jeep D-segment car, including $500 million to expand to the famous Jeep plant in Toledo, Ohio. The $500 million investment includes a 260,000-square-foot expansion of the existing body shop and upgrades to all other areas of the facility. Equally important, Chrysler will be adding 1,100 jobs at the Toledo plant on a second shift.

In addition, Chrysler will add a state-of-the-art, 26,000-square-foot Metrology Center, which will help improve vehicle quality by verifying key measurements to ensure accurate fit and finish. The remainder of the $1.7 billion will be invested in other Chrysler Group facilities in the U.S., such as supplier tooling and other related development costs.

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