SAO PAULO - Fiat is moving production of the Uno Mille from its plant in Betim, Brazil, to a plant in Diasa, Argentina. The Uno Mille is the least expensive car in Brazil, at $9,830.
Fiat currently makes 500 Uno Mille cars a day at Betim, along with 1,500 Palios and 300 each of the Fiorino, Tempra and Tipo.
Moving the Uno Mille will free capacity at Betim for higher-margin Palios.
It will also make Diasa more efficient. Diasa has a capacity of only 300 cars a day, but is running at 50 percent.
Diasa will not be able to meet demand for the Uno Mille, but Fiat hopes to convert some customers to 1.0-liter Palios.