Fiat Group's plans to start production of Alfa Romeo models in the United States are gathering momentum with news emerging of their option and that a route will be chosen next month. Photo: Next year the Alfa 8C Competizione will be the first Alfa Romeo to arrive in the country.

Fiat Group's plans to start production of Alfa Romeo models in the United States are gathering momentum with news emerging of their option and that a route will be chosen next month.

According to Automotive News yesterday, Fiat Group is weighing up the option of either taking over and retooling a disused factory belonging to one of the so-call "big three" based in Detroit (General Motors, Ford and Chrysler) or to expand a facility belonging to is own CNH Global division. The production capacity, suggests AN, will be around 150,000 units per year, and cars will start rolling off the lines around 2010-2011, with some models being earmarked for shipping to Europe, much as prestige European carmaking rival BMW does.

The report in AN yesterday builds on an interview last week that Marchionne gave to The Financial Times. "We have always had the view that we had to produce in North America," he told FT. "The question was when do we do it. We all know that at 1:57 to the dollar nobody making a damn thing in Europe is going to make a profit in the US. You can’t. So we need to localise, and that’s why we’re open. I mean, I think where we do it, how we do it and with whom we do it is important."

"As long as I know I will do it, then the timing is less important," he replied to FT when asked about proposed dates. "If I start in 2010 or 2011 producing cars in North America I would be happy." The Alfa Romeo brand will relaunched stateside in 2009, as it seeks builds a market base ahead of local production starting off: "I can suffer the loss initially, as long as I know I’m going to be producing enough. I need to have enough local production to start making a profit," the Fiat CEO told FT.

Alfa Romeo's second option for North American production, according to the AN report, is to expand an existing factory belonging to its CNH Global division. CNH (Case New Holland) is a world leader in the agricultural and construction equipment businesses, it is headquartered in the US, and is quoted on the New York Stock Exchange. Created in 1999 through the merger of New Holland N.V. and Case Corporation, CNH is a global company, supported by 39 manufacturing facilities in Europe, North America, Latin America, China, India and Uzbekistan; 25,000 employees and about 11,500 dealers in 160 countries.

In the United States CNH Global has 11 factories that are now under consideration for expansion to encompass Alfa Romeo car production, with Fiat reportedly planning to make a final decision on the local production strategy by the end of May. AN also says that Alfa Romeo is talking to a variety of states about tax breaks and incentives to locate. States have generally being receptive to assisting the arrival new manufacturing jobs.