Jeep CEO Mike Manley has revealed that Fiat Chrysler Automobiles is looking "very closely" at the option of building a new baby SUV to slot in below the Renegade.

According to Automotive News Europe, Manley told media at the recent North American International Auto Show in Detroit that the proposed mini-SUV would be sold in global markets that have a taste for small vehicles.

The report cited a separate piece in Italian daily newspaper La Stampa that suggested the baby Jeep would measure less than 4 000 mm in length and be built at FCA’s plant in Pomigliano, Italy, where the Panda is currently produced.

Automotive News Europe suggested that the proposed new Jeep would use the same platform employed by the Panda and Fiat 500. Interestingly, FCA chief Sergio Marchionne has already confirmed that the next-generation Panda will not be built in Pomigliano, which would free up production capacity for a new small vehicle.

The report furthermore added that FCA could reveal its final decision on this baby SUV in June 2018, when it presents the next step in its long-term plan.