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Recession Entices Italian Sport Vehicles To Be Made In The U.S.

Recession Entices Italian Sport Vehicles To Be Made In The U.S.

The weak US dollar is forcing Fiat to consider shifting production of its sport-utility vehicles to America.

Yi Chen

Italian carmaker, Fiat SpA, is looking to shift production of its Jeep and Alfa Romeo sport-utility vehicles to the U.S. As a result of the weak U.S. dollar when compared to the Euro, Fiat is looking to move more jobs into the U.S. market. This would be a smart move as labor, production and shipping costs could be reduced, compared to producing the SUVs in Europe and then shipping it over. AT Kearney analyst, Marco Santino, explains:

From a product-mix point of view, it makes a lot of sense. The U.S. would keep know-how of SUV building, it would help the launch of Alfa Romeo in North America and it would be a more competitive product due to lower costs of production.


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