Fiat ceasing to produce passenger vehicles in USA

After failing to find a partner for the production of Chrysler 200 and Dodge Dart sedan, Fiat Chrysler Automobiles (FCA) decided to stop producing these cars in the United States of America from 2017. Both models should have entered the production process in late 2016, but the decision has been made for the American factories to focus on SUVs and pickup vehicles instead.

Sergio Marchionne is planning to increase profit margins in order to keep up with the competition, and the cessation of the production of passenger vehicles in America is part of the plan. USA Today reports that the conglomerate will continue to produce its models in Mexico, Canada and other countries, due to lower costs.

The first phase of this grand plan is the modification of the Sterling Heights factory, where Chrysler 200 will continue to be produced until December. FCA will invest USD 1.49 billion in this factory, where the production of Ram 1500 will begin in early 2018.

Despite this, there's still hope for Chrysler 200 and Dodge Dart. Marchionne claims that FCA has made progress in negotiations with potential partners, but that they are not in the position to make any announcements yet.

Fca S.p.A. Italija

Fiat Chrysler Automobiles

FCA

Chrysler 200

Dodge Dart sedan

Sergio Marchionne

SUV

pickup vehicles

Sterling Heights factory

passenger cars