The Fiat Group plans to invest as much as 9 billion euros on new models to end European losses in three years and revive nearly empty Italian factories, two people familiar with the matter said.
In addition to bolstering the upscale Maserati and Alfa Romeo marques with new Italy-built models, the carmaker will focus the Fiat brand on variants of the 500 and Panda minicars.
Fiat brand CEO Olivier Francois has said the Panda family will be aimed at budget-conscious customers while 500 models will target buyers willing to pay extra to have a more premium product.
With the timing of Fiat’s sought-after merger with Chrysler Group uncertain, Sergio Marchionne, who is CEO of both carmakers, is under pressure to stem the Italian manufacturer’s losses in Europe. While Fiat has previously said it aims to develop about 20 new models for Europe by 2016, including eight Alfa Romeos, the company has declined to comment on a revised European strategy until April.
