Both cars will be produced at the Melfi plant in the southern Italian region of Basilicata, which currently manufactures the Grande Punto.

In a statement on Friday, Ugl trade union official Pino Giordano said work to adapt the production line at Melfi to produce the two new models was underway.

Fiat, which completed a merger with its U.S. arm Chrysler last week, will present a new industrial plan, outlining new investments and models, in early May.

(Reporting by Stefano Rebaudo, writing by Danilo Masoni; Editing by Peter Galloway)