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Chrysler and Fiat will be investing more than $1.3bn into Fiat’s dated Mirafiori plant as part of a joint venture.

The factory will be assembling future Jeep and Alfa Romeo models – including replacements for the Compass & Patriot compact SUVs — for international distribution, starting in late 2012.

Fiat said the plan is to bring "a new platform from the U.S. to produce cars and SUVs for the Jeep and Alfa Romeo brands."

Those models will include the midsize Alfa Romeo Giulia sedan and wagon, replacing the 159 and will be sold in both Europe and North America. Mirafiori also will construct compact premium SUVs for Alfa and Jeep. Alfa Romeo is aiming at the Audi Q5, BMW X3 and Mercedes GLK.

These models will centre on a new Compact Wide platform, borrowed from Fiat's Compact platform, which underpins the Alfa Romeo Giulietta. The Compact Wide architecture is currently being equally engineered in Italy and North America.

The Mirafiori assembly plant currently manufactures a verity of vehicles, from the Fiat Multipla to the Alfa Romeo MiTo. Its annual capacity will be increased from 250,000 to 280,000 units.