Fiat will build a 'baby' Jeep and Fiat derivative in Italy

Fiat will build a "baby" Jeep in Italy to sell in Europe and possibly also the United States, two company sources told .

The Jeep will be smaller than the brand's current entry SUVs, the Patriot and Compass. The model will be produced in Fiat's home plant of Mirafiori in Turin, alongside a similar vehicle for Fiat brand that will replace the Sedici and an Alfa Romeo subcompact car for sale in Europe and North America.

Fiat declined to give details on which models will be built in Mirafiori as part of a refurbishment of the factory, but the automaker is developing smaller models to meet an increasing demand downsized vehicles, especially in Europe.

In a statement issued on Monday, Fiat, which controls 53.5 percent of Chrysler Group, said it will remodel Mirafiori to build the most updated version of one of its three main architectures on which different nameplates for its various brands will be produced.

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