Fiat 500 Production to End in Mexico; All Next-Generation 500s Will Be Produced in Poland Using Global Specifications

Feb 11, 2013 12:14 PM EST | Staff Reporter

Italian carmaker Fiat S.p.A. intends to relocate production of its next-generation 500 series from Mexico to its factory in Tychy, Poland, according to a report from AutoNews.com.

At the Detriot Auto Show in January, Fiat-Chrysler CEO Sergio Marchionne said Chrysler's North American plants are nearing full capacity, the report said

Chrysler's Toluca Car Assembly in Toluca, Mexico employs more the 2,000 people and has been producing the Fiat 500 primarily for markets in North and South America.

The redesigned, next-generation 500 is due in 2015.

The production move will also secure more work for the Tychy plant, which reportedly has struggled during recent years of low automobile sales in Europe and in the wake of Fiat Panda production moving to Italy.  

The AutoNews report states, the production move will end 500 manufacturing at the Mexican plant altogether, freeing the plant to product other cars for the North and South American markets. The Toluca plant also assembles the Dodge Journey, which is sold as Fiat Freemont in Europe.

Despite their physical similarities, European and North American 500 models are structurally different, according to Automotive News Europe, and concentrating the production in one plant and using global specifications will enable Fiat to avoid excess costs.

The sporty four-seat, three-door Fiat 500 officially launched in July of 2007 and is sold in several models. While Italy has been the car's primary market, the 500 has gained a strong international following. More than 70,000 Fiat 500s have been sold in North America. Fiat is a subsidiary of Chrysler Group, LLC.

Fiat-based cars are manufactured around the world, with the largest production operation being in Brazil, where Fiat is the market leader.

The Fiat 500 received the highest ratings for personal injury and the highest claims on medical coverage, according to a study from Insure.com, which tested a variety of automobiles' safety ratings in head-on crashes.

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