As part of a bigger expansion plan, Jeep has announced that it will be producing a smaller SUV model at its plant in Melfi, Italy.

This new SUV is not the previously announced replacement for the Jeep Compass and Patriot but rather a whole new model. Even though the new, smaller SUV will be built in Italy, Jeep plants in the United States have no need to fear. The Compass/Patriot replacement will be built in the United States, and Chrysler currently plans on adding over 1,100 workers to the Toledo plant next year.

Chrysler’s majority owner Fiat expects that production of this smaller SUV and another new Fiat model at the Melfi plant will help the local economy as well as increase auto sales in Europe. Also, the Melfi plant has been underutilized of late, and it makes sense to put it to good use.

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