Fiat Models To Power Chrysler Products

It probably won’t be much of a surprise to Chrysler followers, but come next Wednesday we’re going to learn just what sort of direction the beleaguered automaker will take when it announces its product plans going forward. With Fiat steering the ship, a number of new models based on Italian technology will underpin upcoming Chrysler and Dodge vehicles, particularly its cars.

Dodge Ram

The announcement is coming as some worry that Chrysler needs to move quickly as customers abandon the automaker in favor of competing brands such as Ford, Hyundai, Kia and Volkswagen. Chrysler has already said that for all intents and purposes its Dodge Ram line will be separated from other Dodge products which also means that the Dodge Grand Caravan and other Dodge models will go away. In their place will be a handful of new models resting on Fiat platforms.

Fiat has indicated that the Fiat 500 (pictured), its popular world car, will be sold through select Chrysler dealers beginning in 2011. The Italian automaker has also said that its Alfa Romeo line will be introduced to the US market, perhaps no later than 2012. Fiat owns a 20% stake in Chrysler, but the company has no plans to pour cash into the struggling automaker, just product lines.

UAW Ownership

Chrysler filed for bankruptcy late this past spring, emerging weeks later with most of its toxic assets left behind. With federal government assistance, Chrysler broke free from its previous parent, Cerberus Capital Management, LP and is now owned by the United Auto Workers (UAW), the US and Canadian federal governments and Fiat. The UAW owns the lion’s share of what is now legally called Chrysler Group, LLC at 55%. Over time, Fiat will eventually increase its ownership to 35% and, if successful, gain controlling interest over Chrysler.

A number of Dodge models will go away over the next few years including its midsize sedan, the Avenger, the Nitro SUV and the compact Caliber. Several Jeep models will be dropped including the bulky Commander, as well as the Compass and Patriot. Chrysler will say good-bye to the aged PT Cruiser and its midsize Sebring sedan. New models based on Fiat platforms will replace some of the vehicles being retired, but not all.

Fiat 500

Fiat plans to build its 500 model in Mexico beginning in 2011, importing that car to the United States. Several other Fiat derived model lines will be built at other factories in North America and sold as Chrysler, Jeep and Dodge vehicles. We’ll have to wait until the Chrysler Group makes its announcement next week to see the outline of those plans.

Developing Trends Promise To Reshape Auto Industry

The just released Kia Forte sedan will soon be joined by the Forte Koup, a stylish two-door model arriving later this summer.

We’re right at the middle of the year which is a good time to take a look at the auto industry and what is coming down the pike over the coming 6 to 18 months. The first six months of the year were very active as both GM and Chrysler went bankrupt with Chrysler already emerging through its proceedings and is now part of Fiat. The rest of the industry is awaiting for the market to rebound, but the auto landscape will continue to change in the months ahead.

The following are some of the changes on the horizon:

Near term – This summer, Ford will release the all new Ford Taurus a nicely redesigned full sized sedan for the Blue Oval. Ford will also be introducing its highly anticipated EcoBoost technology and will roll out its Lincoln MKT crossover by late summer. GM has a pair of Cadillacs in the pipeline – the SRX crossover and the CTS wagon. Buick will get a new LaCrosse sedan while GMC inherits the Terrain which is based on the Chevy Equinox. Chrysler has nothing coming up while Acura will stick a V6 engine in the TSX. The Kia Forte KOUP should be in showrooms by late August.

This fall – The remaining 2010 models will be out, a model year that began right after the new year when the Mercedes GLK was introduced. A hatchback BMW 5-Series is on its way, while a small X1 crossover is being introduced.  A restyled Audi A8 hits the market while the S4 makes its return. Hyundai introduces a restyled Tucson while the Mitsubishi Lancer Evolution will be welcomed back. A hybrid version of the Porsche Cayenne will be introduced. Mahindra will be selling their first trucks this fall.

Next spring – 2010 will have several watershed moments including the introduction of the Ford Fiesta subcompact. Throughout the year beginning in the Spring, automaker will be rolling out several pure electric and plugin hybrid models. Mitsubishi and Nissan appear to be leading the way with Ford and Toyota following.

Summer 2010 and Beyond – The Chevy Volt will likely hit showrooms by November but there will be lots of new models from new manufacturers including Coda, Fisker, Th!nk, Smart, MINI and perhaps V-Vehicle if the latter doesn’t turn out to be a bad case of vaporware. By the end of the year the Fiat 500 should be ready for the US. Tata Motors could be bringing the Nano to the US by year end, but 2011 looks like a better bet.

There is really very little uniformity in the auto industry as consolidation means some brands will disappear or be companies merged while new ones will continue to pop up especially if government money plays in as it is doing now in the US. China and India with their vast consumer societies are forces to be reckoned with as their cars begin to appear on American highways.

Thus, the forecast I gave is just a generalized overview, with room for additional changes too.

See Also — Coda Automotive Introduces All Electric Sedan