Fiat will start building Jeeps in Italy from 2014.

The Italian carmaker said Thursday it plans to invest more than 1 billion euros in its plant in Melfi in southern Italy to build both a new Jeep brand vehicle and a new Fiat.

Melfi will be "one of the most advanced car assembly plants in the world equipped with the very latest technologies," Fiat said in a press release.

Jeep is part of the Chrysler Group, which is majority controlled by Fiat. Fiat markets all Chrysler brands in Europe, while Chrysler represents the Fiat brands in the US.

Fiat said it had already started modifying the existing plant in Melfi to accommodate its new modular "small wide" platform. This is one of Fiat-Chrysler's three principle architectures. It can be adapted to build bigger vehicles and is configured to comply with US regulatory standards.

"Vehicles produced at the Melfi plant will be export ready, with no requirement for further modifications," Fiat said.

Fiat will build a Jeep utility vehicle at Melfi, which marks the Jeep brand's entry into a new segment. It will also build the new Fiat 500x there, a bigger version of the 500L launched recently.

Fiat said Melfi will be able to produce up to four different models on the same assembly line. Total daily production capacity with three shifts will be 1,600 vehicles a day.