Chrysler has been front and center in the news this week, announcing a product-sharing deal with Nissan, as well as looking at expanding its partnership with Chery Automotive in China.
Now reports from Germany’s Handelsblatt newspaper are claiming that Chrysler is in an advanced state of talks with Fiat, with an eye to teaming with the Italian automaker for possible production in the U.S. Fiat has been looking for idle capacity at auto plants as it plans Alfa Romeo’s American return, and has discussed cooperation with BMW or Detroit Three companies.
Meanwhile, Fiat chief technology officer Harald J. Wester revealed to Handelsblatt that the much-celebrated Fiat 500 minicar will be offered for sale in the U.S., though no time frame was given. Wester said that the American market 500s would be built either in the U.S. or at one of Fiat’s existing facilities in South America.
+ Motor Authority: Fiat in talks with Chrysler, confirms 500 for U.S.
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Good for Chrysler-this should help the company stay in business a little longer. Good for Fiat-a second chance in the world’s largest market. God for us-more choices.
Now if someone could create a 4th major US maker, not some small cottage player.
If you ever had any doubt about the lack of demand for Chrysler products, this is proof. First Nissan, then Chery and now Fiat are going to use Chrysler production facilities.
Would the last Chrysler autoworker please turn out the lights as he’s leaving?
Chartguy, all three of the “big three” have excess factory capacity. Chrysler is negotiating with these foreign companies to see if they want to use Chrysler’s excess plants for production, G.M. and Ford are closing and disposing of plants. Why is leasing out an idle plant considered more evidence of the lack of demand for a companies products than closing and disposing of plants? Is there any evidence of demand for any American products outside of niche cars like the Corvette and Mustang?
A “Fiats for Chrysler” situation sounds fine with me. There’s not really a good reason that Chrysler has to design and build small or mid-size cars at a loss when there are plenty of companies out there who could make them profitably with a higher volume.
Like ‘em or not, Chrysler has distribution in the US and Canada, and that’s something that a lot of auto companies don’t have.
That being said, you should poke around the motorauthority web site and see what sort of “stories” have been on there in the past. I believe that if one passes along enough rumors, as motorauthority seems to do, then eventually, one of them will come true.
I hope this one does.
Is there any evidence of demand for any American products outside of niche cars like the Corvette and Mustang?
You should probably reword this as it doesn’t make any sense. A quick look at the top 10 sellers for 2007 should answer this question if that’s what you really meant.
Heard there’s supposed to be a Abarth SS version of this car with 180 hp. The current 500 weighs around 2000 lbs. 180 hp in a 2000 lb car would be quite fun.
Actually,this might be a good fit(Chyrlser/Fiat). Being an owner of an ‘03 MINI Cooper,an open secret with this car is that the engine was made by Chyrlser. Now that the current MINI has it’s engine made by MINI/BMW,that engine could be used to power the new U.S. version of the FIAT 500…
…kind of like what Lotus did,when it used a Toyota engine for its’ American version of the Elise.
I wish Chyrlser the best of luck;plus,I can’t wait for the 500 to come over to the states.
I said it with the Chery and Nissan topics: this is smart. For all the premature and idiotic condemnation of Cerberus’s ownership, Chrysler has been making sensible cuts and reported partnerships since the takeover. Chrysler is seeking low-cost small cars: this is one way of doing it.
I agree. Chrysler needs low-cost, fuel-efficient and APPEALING cars. And it needs them fast. I think Chrysler’s strategy to obtain these vehicles through alliances with other automakers is intelligent. And it will likely be followed by other automakers. I just hope assembly quality will be acceptably high.
We have seen the reduced expense of importing foreign vehicles with the Saturn Astra, Honda Fit, and Pontiac G8. Though these vehicles were from subsidiaries, the cost of having them meet US safety and environmental standards was cheaper developing an entirely new vehicle. Chrysler can build a good small car–look at the PT Cruiser. This was and is a good small car. Chrysler just made the mistake of letting it collect dust while getting more expensive. (The Taurus factor.)
I hope this one is true… I visited a Fiat dealership while in England and just fell in love with the 500. I like small efficient cars that are interesting to look at and the 500 is chock full of interesting details and is reportedly a fun (but slow in non Abarth trim) car to drive. The Diesel version is reportedly capable of extraordinary fuel economy as well.
Coincidentally, while on business travel the last couple of weeks I had a base PT Cruiser 5-door and a PT Cruiser convertible as rental cars. The 5-door (a base automatic) was a total dog mechanically, but I continue to think that the overall packaging makes for an interesting and practical ride. The interior quality was just horrendous. Is it me or has Chrysler decontented the car quite a bit over the years?
This week I had the convertible… what can I say, like an whiny sorority girl, a lot of annoying habits can be forgiven once the top comes off.
Chrysler needs an interesting small car in their lineup now that the PT is dead and the Fiat 500 would be an interesting addition to their shrinking line-up.
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