(November 27, 2010) Fiat and Chrysler will build Alfa Romeo and Jeep models for global distribution as part of a new joint-venture company that will take control over Fiat's Mirafiori plant in Turin, Fiat has announced.

Automotive News reports that Fiat-Chrysler will invest about $1.3 billion to retool the factory.

A Jeep model to be built there will reportedly replace the current Compass/Patriot.

The plant will produce the mid-sized Giulia sedan and station wagon, which will replace Alfa's 159 range, as well as medium SUVs for the Alfa and Jeep brands. The Alfa SUV will be aimed at the Audi Q5, BMW X3 and Mercedes-Benz GLK, a Fiat spokesman said.

Output will start in the third or fourth quarter of 2012, Fiat said, adding that half of the production will be sold in Europe and the other half will be exported, mainly to North America. The Alfa models are a crucial part of the brand's relaunch in North America.

The addition of the models will raise the plant's production to 250,000 to 280,000 units a year, the company said. The Mirafiori plant made 178,500 cars in 2009.