Italian carmaker Fiat is planning to invest $1.3bn in its Melfi facility in Italy to manufacture two new car models including a new Jeep and a Fiat 500X models.
The investment forms part of the carmaker's plan to slash losses in Europe and boost capacity usage.
Existing processes at Melfi are to be modernised by adding the new modular Small Wide platform, which will help production of larger vehicles.
The products manufactured at the new platform will conform to US regulatory standards, thus facilitating direct export of vehicles with no further modifications required.
Technology upgradation at Melfi includes a new metrologically-equipped stamping shop, new panel and body welding lines, 500 new welding robots and adotping modern technologies in the paint shop.
In the assembly area of the plant, new equipment will be installed to improve work station ergonomics and logistics flows.
Following the completion of upgrades in 2014, Melfi will be capable of producing about four different models on the same assembly line, with a total production capacity of 1,600 vehicles per day.
The new Jeep utility vehicle will be first launched followed by the larger and more spacious Fiat 500X family vehicle.
