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.

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.

Fiat

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