Fiat Chrysler said it would invest 500 million dollars in its Cordoba plant in Argentina to make a new model next year for the region.
The investment announcement was made during a visit between the Argentine president and the CEO of Fiat-Chrysler this week and includes the upgrade of the Cordoba plant, incorporation of new technologies and processes, supplier development, research, and staff training. The new model will be launched in the second half of 2017 and, once the improvement is complete, the plant will have a total production capacity of more than 100,000 vehicles per year. “We have decided to install a new modular platform for the production of a completely new model that will only be produced at this plant, with the majority of production destined for export,” FCA head Sergio Marchionne.
The new commitment is part of FCA’s expansion strategy for the region and aimed at strengthening the role of the facility in Cordoba as one of the main output hubs for the automaker in Latin America. The new model intends to increase the local output levels by 50 percent and to also boost exports in the region, as more than 80 percent of the production will be destined for emerging markets, primarily those in Latin America. Fiat Chrysler intends to incorporate more than half of local parts in production of the new car, rather than import them from Brazil. Currently, the Cordoba plant builds the Palio and the Siena, and it is likely for the new project to be around the next-generation of the latter model.