FILE PHOTO: A Fiat Chrysler Automobiles (FCA) sign is seen at the U.S. headquarters in Auburn Hills, Michigan, U.S. May 25, 2018. REUTERS/Rebecca Cook/File Photo

MILAN (Reuters) - Italian metalworker union FIOM on Monday called on Fiat Chrysler FCHA.MI to come up with new car models to be produced in its home town of Turin to ensure the Mirafiori plant there reaches full employment.

In October Fiat Chrysler and Peugeot owner PSA PEUP.PA unveiled plans to create a $50 billion group, set to become the he world's No.4 automaker.

But analysts fear the merger could create a group with spare production capacity of almost six million vehicles in a slowing autos market.

Fiat Chrysler has pledged to invest 750 million euros in its Mirafiori plant in Turin, as part of a 5 billion euro plan to 2021 for Italy, but FIOM said in a statement that a new business plan was necessary to increase production and boost jobs.