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WARSAW, Dec 29 (Reuters) - Italian-American automaker Fiat Chrysler FCHA.MI will invest 2 billion euros ($2.45 billion) in its plant in Tychy, Poland, Deputy Prime Minister Jaroslaw Gowin said on Tuesday, in a move that will see new hybrid and electric models produced at the factory.
The investment comes as a boost to emerging Europe's largest economy, which is hoping a switch to electric vehicles can help its auto sector catch up with regional rivals including the Czech Republic and Slovakia.
"Modern, hybrid and electric cars of the Jeep, Fiat and Alfa Romeo brands will start to leave the factory in Tychy in 2022," Gowin wrote on Twitter.
Fiat Chrysler, which is planning a $38 billion merger with French rival PSA PEUP.PA to create the world's No.4 carmaker, said in a statement the early preparations for the expansion and modernisation of the plant started in late 2020.
The plant in Poland's industrial southern region of Silesia is one of the company's largest and currently employs around 2,500 people.
Fiat Chrysler confirmed that new hybrid and electric Jeep, Fiat and Alfa Romeo models would be built in Tychy.
It said the aim was to start mass production of the first of the three new passenger car models for the group's brands in the second half of 2022.
In its 2018-2022 plan, FCA pledged to invest 9 billion euros in electrification as part of investment plans totalling 45 billion.
($1 = 0.8163 euros)
