Fiat Chrysler to invest $540 million in new engines for Alfa Romeo
Reuters
Published Apr 08, 2015 01:35PM ET
Fiat Chrysler to invest $540 million in new engines for Alfa Romeo
MILAN (Reuters) - Fiat Chrysler (NYSE:FCAU) Automobiles (MI:FCHA) will invest more than 500 million euros ($540 million) to produce two new engines for its Alfa Romeo cars as part of a planned relaunch of the brand, the car group said on Wednesday.
Alfa Romeo is a core part of Fiat Chrysler's ambitious five-year 48 billion-euro turnaround plan.
The carmaker plans to invest 5 billion euros in Alfa Romeo to boost sales more than fivefold to 400,000 vehicles in 2018 by adding eight new models and ramping up production.
The engines, to be produced at the group's Termoli factory in southern Italy, include an advanced high output four-cylinder engine developed for Alfa Romeo, the company said.
The second product will be a Ferrari-derived six-cylinder engine developed specifically for Alfa Romeo.
Fiat bought Alfa from state holding company IRI in 1986, but several attempts at reviving the brand have stalled, leaving just three models. Only 74,000 Alfa Romeos were sold in 2013.
Fiat Chrysler's chief executive, Sergio Marchionne, has said he would keep production of Alfa Romeos in Italy to fill under-utilized plants, protect jobs and vindicate his belief that "Italians know how to build great cars".
The first new Alfa Romeo model is due to be unveiled in June.
($1 = 0.9243 euros)
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.