Although Fiat was originally eying a U.S. location for an Alfa Romeo production facility, the Italian automaker has now turned its attention to south of the border. Alfa will make its return to the U.S. market in late 2009 and therefore needs a plant in North America to avoid losses due to an unfavorable exchange rate. However, strong demand from South America has Fiat reconsidering the plant’s U.S. location.
According to Automotive News, Fiat is considering a plant in Mexico that would be able to supply North and South America. Demand in South America is out pacing Fiat’s supply, so the automaker needs to up its production capacity in that part of the world.
Mexico’s central location would allow Fiat to use a plant built there to supply both North and South America.
“Where that [South American] capacity will come from is not yet decided. I think that it may be part of a North American solution, especially in terms of the introduction of the Alfa brand”, Fiat CEO Sergio Marchionne told Automotive News.
Fiat announced earlier this year that it was looking to work with one of the three big North American car companies to share their production lines or move into one of the companies’ shuttered factories. Another possibility is that Fiat could convert one or more of its 11 North American Case New Holland plants to produce its vehicles.
Fiat is expected to announce a location by the end of May.
05/09, 9:25 AM
posted by:
xyunya
Deja vu all over
05/09, 9:43 AM
posted by:
edgeguy
LOL. This will not end well.
05/09, 9:44 AM
posted by:
global_lightning
At a maquilladora near Ciudad Jaurez:
“Ladies, yesterday we finished our Ralph Lauren underwear contract. Today we start producing FIATs. Lupita, here is your ARC welder. You’ll get your safety googles as an incentive for making 100 frames with no defects. Get to work!”
05/09, 10:28 AM
posted by:
mr.meanpants
I love Fiat and Mexico is heaven, but this a quality control nightmare. Mexico built VWs are dreadful.
05/09, 10:38 AM
posted by:
jumpoffit
wonder if i’ll find a tamale or some platanos in my glove box-
and i’m sure to piss off the americans, ever station on the car radio will be preset to tejano or ranchero music-
yeeeeeeeeeeeeeeeeeeee yay ay ay aye ayeeeeeeeeee
05/09, 10:49 AM
posted by:
shaver
Unfortunate for the brand, a step back.
05/09, 11:10 AM
posted by:
howsmydriving
Please God, don’t darken the Western Hemisphere with a FIAT plant (from a former FIAT owner).
05/09, 11:10 AM
posted by:
mayer_ray_nagin
Smart move. Fiat’s will not only be built for the USA where they have a reputation hurdle to overcome, but also for sale thru Latin America where a “Made In Mexico” label does not carry the short-sighted and stupid prejudicial commentary that is witnessed above.
.
By the way, anyone who wears Ralph Lauren undies is a fruitcake. For briefs, Calvin Klein has the best fly-system design on the market.
05/09, 11:27 AM
posted by:
xyunya
Thank you for sharing underwear preferences, that was very macho.
Mexican labels have no reputation for quality, because there is no quality in their products. VW made in Mexico are horrible, yet if you get one made in Wolfsburg, it is not half bad (relatively speaking). Nissan has problems with quality of Mexican plant as well. Even VW’s made in Brazil are considered of better quality.
By the same token, I would much prefer shoes made in Mexico to those made in China.
05/09, 11:29 AM
posted by:
xyunya
Or yes, love Mexican beer, even without tacos.
05/09, 11:30 AM
posted by:
F451
I guess people here do not follow foreign country developments, or they would see and learn that many people are investing in Mexico. How long do you think it will be before matters turnaround for Mexico. When my father was fighting the Vietnam war, he sent me a transistor radio Made in Japan. What a piece of junk that was, but all the kids gathered around to listen to it..where did Japan go after that, and my how things changed. There is major money and many countries moving to Mexico that people—here—have not taken the time, nor the interest to study.
.
mayer_ray_nagin is right (at least with his first statements).
05/09, 11:34 AM
posted by:
jumpoffit
well if you had to jump out of a plane and had 2 parachutes to choose from, one made in mexico and one made in japan- which would you choose…….
05/09, 11:34 AM
posted by:
DialM4Speed
I guess Fiat decided the US isn’t third world enough for them… YET! Bubba and Jethro still insist on getting minimum wage at least.
05/09, 12:24 PM
posted by:
shaver
F451: No ****, when did you wake up. As one of the thousands who would cross the border from US into the La maquilladora in the early 90s everyday. I can personally tell you that companies invest/produce in Mexico for 3 reasons. Cheap labor near US market, cheap energy, relaxed enviro/safety regulation. Most of the “skilled” labor and management were imports like myself or from corporate Japan. Quality control and finding skilled educated people is their number one issue at these plants.
05/09, 12:46 PM
posted by:
xyunya
I am not dissing Mexican labor, but high tech production like auto does require educated work force. I personally don’t know, but is high school education requirement in Mexico? Based on number of Mexicans in service and farming industries, I doubt it. Their products from textile and leather industries are perfectly fine, but Alfa Romeo does not fit that mold. In the past FIAT withdrew from US market due to low quality of it’s cars and anchoring factory in low wage low education geography is not a way to correct history, at least in my opinion.
05/09, 8:07 PM
posted by:
autonut
I don’t know if FIAT even makes car in Italy any longer. 500 is made in Poland and does not appear to have any quality issues. Perhaps Mexico will work for FIAT as well. Poland isn’t further advanced then Mexico.
05/09, 10:36 PM
posted by:
Badass Z51
NOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO!!!!!!!!!!!!!!!!!!!!!
05/10, 2:43 AM
posted by:
VictorRaikkonen
I will have two enchiladas, a side of rice, a coke and an Alfa 180ti please.
05/10, 10:43 AM
posted by:
wolfvonder
…and your high school-educated workers in the US are good for what?…awesome quality in their products (yeah right…) and..oh yeah..200 million dollar strikes!…bet you all who think Mexico’s production quality stinks have not driven a Brazil VW car (who by the way are true sh_it), or a mexican-made Bora sportwagon (which is sold in europe) for that matter…keep your money in the US and let the true smart people invest in Mexico, they’re the ones getting their pockets full of money while you see your retirement go through the toilet as your mighty dollar keeps on going down