Fiat Chrysler will also keep diesels alive longer than expected

Fiat Chrysler (FCA) has confirmed it'll spend over €5 billion ($7.7 billion) on new products and drivetrains to be produced at its Italian factories.

The automaker met with union officials last week to outline its updated production plans for the next three years, which it hopes will return the company's Italian factories to full employment.

This is the first major strategy overhaul announced under the leadership of Mike Manley, the CEO chosen to replace Sergio Marchionne, who passed away this year due to surgery complications.

FCA's plant in Melfi will soon add the Jeep Compass to its production roster alongside the related Renegade.

Above: Jeep Compass.

Alfa Romeo will gain a crossover to slot in below the Stelvio. Contrary to earlier reports, it will utilise the Compass platform instead of a cut-down version of the Stelvio's architecture.

To be built at Pomigliano factory, the new crossover will be available with a plug-in hybrid drivetrain.

The BMW competitor will also benefit from facelifted versions of the Giulia sedan and Stelvio crossover.

Speaking of the Stelvio, its platform will be used for a new, more affordable Maserati crossover positioned below the Levante.

Maserati's Modena factory will also build a new model for the brand. Although the products haven't been officially announced, reports in the Italian media suggest it will be the electric Alfieri coupe and convertible.

Before 2021 is out we can also expect to see facelifts and plug-in hybrid drivetrains for the Levante crossover, and Ghibli and Quattroporte sedans.

Above: Fiat 500.

The company's namesake Fiat brand hasn't been left out of the action, with the Panda set to gain a mild hybrid model, and the 500X in line for plug-in hybrid drivetrain and another facelift.

Fiat Chrysler also plans to build the all-electric variant of the 500 at its Mirafiori factory in Turin. Regular versions of the 500 will continue to be produced in Poland.

Pietro Gorlier, head of FCA Europe, told Automotive News and other outlets the automaker's Italian factories will launch 13 new or updated models by 2021.

He also stated the company's earlier target to end diesel engine production by 2021 was "too aggressive". While noting the trend away from compression ignition engines, he said FCA will continue making diesels beyond 2021.