Milan — Fiat Chrysler will spend more than €5bn on the car maker’s factories in Italy, shoring up its struggling European business by focusing on more in-demand sport utility vehicles and electric cars. For years the manufacturer’s Italian sites have struggled to run at full capacity, raising costs. By keeping the factories open and rejigging their output the car maker may avoid similar political backlash to what General Motors is facing after deciding to close several North American plants. The increased outlay to the end of 2021 will finance Fiat’s plan to build a compact Alfa Romeo SUV at the Pomigliano plant, hometown of Italy's deputy premier, Luigi Di Maio, and a battery-powered Fiat 500 in Turin’s Mirafiori factory, the company said in a statement, confirming an earlier Bloomberg News story. In addition, a second model under the Jeep brand will be manufactured in southern Italy to tap into burgeoning demand for SUVs. The investment will allocate more than 11% of Fiat’s averag...

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