¡Hola! Replacement to Jeep Patriot and Compass to Be Built in Mexico
FCA’s CEO Sergio Marchionne has announced some changes regarding production of a few vehicles in his company’s portfolio. While the biggest news might be Ram’s move to Sterling Heights from Warren, there is also news that a Jeep SUV that was to be built in Belvidere, Illinois is moving to Toluca, Mexico. This is part of an overall strategy to save money and not lose any production.
This announcement comes as FCA is working to shift production of their low-margin cars and small vehicles to Mexico, while shifting larger and higher-margin vehicle production to the United States. They’re not the only company doing this, Ford is following a similar pattern. But Mr. Marchionne is expecting some layoffs even though he doesn’t actually expect to lose any U.S. jobs.
“We have had obviously intense dialogue with our counterparts at the UAW about the implications on head count,” Marchionne said. “I confirm now, as we have done with them, that the realignment of the footprint in NAFTA is actually going to yield an increase in manpower.”
FCA has said that the vehicle being built in Mexico will be the replacement for both the Jeep Compass and the Jeep Patriot, but we don’t know what that vehicle is going to be named, and we’re quite honestly surprised we haven’t seen it at any auto show yet.
The news isn’t bad for Belvidere, though. They’re getting Jeep Cherokee production so Toledo has room for the all-new Wrangler.
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via [Detroit Free Press]
