Fiat 500 Production Moving from Mexico to Poland

Fiat SpA will shift production of its 500 city car from Toluca, Mexico, to Tychy, Poland, when the next-generation model launches in 2015, according to Automotive News Europe, which cites unidentified sources.

An analyst tells the online newspaper that the reallocation will boost capacity utilization at the Tychy plant, which already makes the 500 for Europe. The move also will free up capacity at Toluca to make more models for Chrysler Group.

Last month Fiat-Chrysler CEO Sergio Marchionne noted that Chrysler's facilities in North America are running at near capacity. Fiat's facilities in Europe are languishing because of the region's sales slump.