ROME (dpa-AFX) - Fiat Chrysler Automobiles's US will focus on Jeep SUVs and Ram Pickups and plans to stop producing small passenger cars from early next year. The plan to stop Dart and Chrysler 200 production will be effective by first quarter of 2017.
The new plans are expected to increase profit margins, as SUVs has much popularity in US markets, especially when gasoline prices are cheaper. The automaker plans to spend around $1.49 billion to restructure its plant in Michigan for production of Ram 1500. The production at the new facility will begin in next two years time. Currently Ram 1500 is produced in Warren.
At the same time, production of Jeep Cherokee will be moved from Ohio to Illinois at a cost of $1 billion.
Copyright RTT News/dpa-AFX