Chrysler's Plans With Fiat: Work in Progress?

(MoneyWatch)  Chrysler's emerging alliance with Fiat is still in its infancy, but because the deal gives the U.S. carmaker access to a rich trove of Italian small car platforms speculation is rife. What's coming here, and will the forthcoming cars be badged as Chryslers, Fiats or even Alfa-Romeos?

In an earlier story, I put forth the retro Fiat 500 and the forthcoming Topolino city car as likely candidates to help fill in the big hole that is Chrysler's "A" and "B" segments. The very popular Fiat Panda is also a contender. But Chrysler executives are insisting no decisions have been made, and probably won't be until April.

Automotive News reported January 26 that plans have progressed further than the company is publicly admitting. "Chrysler LLC and Fiat S.p.A. will bring seven new vehicles to North America under their alliance -- four with Chrysler brands and three as Fiats or Alfa Romeos," the story said. "The vehicles will be built at Chrysler plants in North America and sold through select Chrysler, Dodge and Jeep dealerships, according to sources who have seen the product-sharing agreement."

The lineup will definitely include the Fiat 500, which would be built at a Chrysler plant in Mexico, the story said.

Rick Deneau, a Chrysler brand and product spokesman, said he was "very surprised" by the Automotive News report. "It's all premature speculation, especially at this point," he said. "We're talking about a lot of product things during this period of due diligence, but there's nothing official." Even so, the reported plans may well represent some current thinking within the two companies.

On the record since last April is Chrysler's alliance with Nissan, which is basically a product swap. According to Deneau, Nissan will build a small "B" segment car in Japan for Chrysler's North American market as early as 2010, and the U.S. automaker will counter with a Nissan-badged large pickup, based on the Ram, and also for the North American market by 2011. The Nissan car will be "smaller than anything we currently have," Deneau said.

The strong-selling Fiat 500 is definitely a good bet for the U.S., though the car might be rebadged with a Chrysler nameplate. It's uncertain how much resonance the Fiat and Alfa-Romeo brands have with the American public after so long away. Alfa left the U.S. market in 1995, and is making a slow, high-end re-emergence; Fiat was gone by 1983.