Word: fiat
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...return, Fiat gets access to Chrysler's new V6, which could open up new upper-tier segments in Europe. Fiat doesn't have a competitive...
...Suppliers also hope that Fiat will transfer some of its well-honed diesel technology to Chrysler. Chrysler buys diesel engines for vehicles it sells in Europe, but it withdrew a diesel-powered Jeep Liberty from the U.S. market last year because the European-made engine didn't seem to meet the expectations of American consumers. Also, Chrysler needs a new diesel engine for export markets in Latin America and the Middle East...
...hope is that a Chrysler-Fiat alliance will make small, fuel-efficient diesel more acceptable to American consumers, according to a major European-based supplier of engine technology that works with Fiat. Fiat's new diesel, a generation ahead, is quieter and cleaner and burns low-sulfur fuel that would enable it to meet stringent new emissions regulations, he says...
...Fiat also offers Chrysler very competent small cars that could put Chrysler fairly quickly in segments like the fast-growing subcompact market, where sales could grow by a third in the next four years, says Hall. Chrysler's smallest car is the compact Dodge Caliber, which has enjoyed limited success. In addition, the Fiat platforms are flexible enough to accommodate different body styles, from two doors to four doors to hatchbacks and small wagons, he says...
...Finally, the alliance could bolster Chrysler's presence in the highly competitive midsize market. Fiat has an excellent midsize chassis/platform, which serves as the basis for the Alfa Romeo 159. "Chrysler could certainly use that," says Hall, since the struggling American automaker doesn't have the money to develop its own. Hall adds that the Chrysler-Fiat alliance is very likely to expedite Fiat's own plans to reintroduce the Alfa Romeo brand into the U.S. market. Fiat has been eager to bring Alfa Romeo, which now has nine models selling in more than three dozen countries...