When the next-generation Fiat 500 arrives in 2015, production will reportedly move from Toluca, Mexico to Tychy, Poland.
The Mexican plant currently builds 500s for the Americas and China, while the Polish site takes care of the European market.
The decision is based on declining car sales in Europe. Moreover, in early 2011, Fiat moved production of the third-generation Panda from Tychy to Italy to protect jobs in its home country.
As a result, Chrysler will be able to increase production of core vehicles for North America.
According to Fiat-Chrysler CEO Sergio Marchionne, Chrysler's North American plants are nearing full capacity. He also told journalists at the Detroit Auto Show that Chrysler plans to ship about 2.8 million units globally in 2014, up from 2.4 million last year.
Source: Automotive News