CORRECTION: An earlier version of this story misstated the production plant for the Bravo.
TURIN -- Fiat's Turkish joint venture, Tofas, will invest $1 billion to produce a family of compact cars that will replace the Bravo in Europe.
Tofas today said it will produce three new cars starting in 2016, mainly for export, without providing any details of the models.
Automotive News Europe sources say the family will include a hatchback, sedan and station wagon. The hatchback will replace the Bravo and the sedan variant will replace the Linea that is currently sold only in central and eastern Europe and Turkey.
Fiat has been without a compact wagon since the Stilo Multiwagon was discontinued in 2008.
Tofas said last year that it would spend $520 million to build 580,000 units of a new sedan model. It said today that it also would build a combined 700,000 units of a new hatchback and station wagon in Turkey, bringing its overall investment to $1 billion.
The investment will begin this year and production will run from 2016 to 2023, Tofas said in a filing with the bourse.
"A significant portion of the total units are slated for export. Talks with the Fiat Group Automobiles on the details for the conditions of investment, sales and procurement are in the final stage," it said in a statement.
European sales of the aging Bravo have slumped, falling by 59 percent to 3,078 units in the first nine months, according to JATO Dynamics. Fiat ended Bravo production at its plant in Cassino, Italy, in July.
The three new models will be underpinned by Fiat Chrysler's small US wide architecture first used for the Fiat 500L small minivan. The architecture also underpins the Renegade and 500X small SUV with the addition of a four-wheel-drive option.
Tofas's plant in Bursa, Turkey, builds the Linea and car-derived vans - the Doblo and Fiorino for Fiat, as well as the Citroen Nemo, Peugeot Bipper and Opel/Vauxhall Combo, according to Automotive News Europe's Guide to European Assembly Plants.
Turkey has Europe's fifth-biggest auto industry. Total production is expected to hit a record 1.25 million units this year, the Automotive Manufacturers' Association said in July. The country's geographical position between Asia and Europe and relatively cheap labor costs have encouraged global carmakers to shift some of their production here.
Automotive sales account for 14 percent of Turkey's overall exports. The country exported 828,000 vehicles worth $21.5 billion last year, with European markets accounting for 70 percent of that total.
Luca Ciferri and Reuters contributed to this report