Fiat is looking to pump up its European sales bolstering sales of its luxury lines, including Maserati.

Fiat SpA plans to drop $12.3 billion to breathe new life into the company’s sluggish sales in Europe. The plan is to put the Italian automaker back on the road to profitability with annual losses ending within the next three years.

The company plans to focus on jump starting the sales of its 500 subcompact and Panda small car as well as its pricier Maserati and Alfa Romeo lines, according to reports. In the past, Fiat said it planned to develop 20 new models for Europe by 2016, including eight Alfa Romeos. However, the company has repeatedly begged off providing any updates on its strategy, saying only it will provide more insight second quarter of 2014.

In addition to the aforementioned products, it’s also introducing a lineup of Jeeps next year that will be built in Italy. Also expected is the replacement of the Fiat Punto with a five-door version of the 500, which will likely be built in Poland to save on labor costs. Wages for auto workers there are 75% lower than those in Italy.

The Punto, which was last overhauled in 2005, accounted for 31% of the Fiat brand’s European sales in 2007, according to data from IHS Automotive.

Sergio Marchionne, chairman of both Fiat and the Chrysler Group, has been facing criticism for the company’s long sales slump in Europe – they’ve fallen 47% since 2009, according to data from industry group ACEA. Fiat’s European market share dropped from 9.2% in 2009 to just 6.2% this year.

Marchionne has been working to merge Fiat and Chrysler. However, his efforts have been thwarted – in part – by the UAW. The union is unwilling to sell its share of Chrysler Group for a price that Marchionne – less than $2.5 billion – seems to think is reasonable.

(Chrysler IPO not happening until 2014. For more, Click Here.)

While a merger could help Fiat lower costs and give it access to cash, Marchionne can no longer wait for that to happen.

“We will utilize what we have in defense of what we have,” Marchionne said on an Oct. 30 conference call with analysts when asked about cutting capacity. “We will not be shutting down plants. We will shift our production capacity in accordance with our premium brand strategy.”

(Click Here to see the management shake up at Maserati.)

Fiat has furloughed many of its 30,700 hourly workers in Italy this year and most of those have been off work for more than five months this year, according to Bloomberg News. The goal is to bring them all back by focusing on growing the sales of Alfa Romeo and Maserati vehicles.