As a companion to the Compass/Patriot replacement, Mirafiori is expected to produce a true crossover-style SUV for Alfa Romeo. This is not to be confused with a second Alfa Romeo SUV rumored to be in the works--which is based on the new Jeep Grand Cherokee built on the unitized platform shared with the Dodge Durango and constructed at Chrysler's Jefferson North facility in Detroit.

The Mirafiori-built Alfa Romeo SUV is expected to be more car-like and biased more towards on-road comfort and performance. Meanwhile, the Jeep version will retain Jeep's off-road capabilities.

The flexible platform will also spawn a premium, near-luxury, sedan version for Alfa Romeo. The Giulia will be competing with the likes of the BMW 3 Series and Mercedes-Benz C-Class sedans. Thankfully, no sedan version is expected to wear Jeep's seven-slot grille. Yet another variation of this platform, stretched in length, is expected to replace the Chrysler 200 and Dodge Avenger at some point in 2013 as well. It will also be built in North America.

The trade publication Automotive News reports that the Mirafiori plant will also produce the upcoming D-segment, mid-sized Giulia sedan and station wagon. The Alfa Romeo-branded SUV will be aimed at the Audi Q5, the BMW X3, and the Mercedes-Benz GLK, while the Jeep version competes against such models as the Ford Escape, the Honda CR-V, and the Toyota RAV-4. Fiat and Chrysler will need to ensure that the Compass/Patriot replacement is price-competitive in the North American market, given that it would have to sell for less than $20,000.

Fiat and Chrysler will share the investment in the required updates to the Mirafiori facility based on the expected output when the platforms are fully merged. This means that Fiat will cover about 60 percent of the cost, or 600 million euros, as it will take 150,000 Alfa Romeos and Fiats each year. Chrysler will contribute 400 million euros, as it will take 100,000 of the replacement for the Compass/Patriot, slated to halt production at the end of 2012.

With Marchionne's announcement, we're seeing tangible examples of the continuing integration of Fiat and Chrysler automotive operations, plans that have been moving forward since Chrysler's emergence from bankruptcy in 2009.

When speaking with executives from both sides of the alliance earlier this month in San Francisco, we sensed a far greater cooperation between Fiat and Chrysler than was present between Daimler and Chrysler during its ill-fated 1999 "merger of equals."

With the current euro/dollar exchange rate pegged at approximately €1.00=$1.30, the road ahead could offer some challenges. The plan is ambitious, and we look forward to seeing how it plays out over the next 24 months.