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Carsales Staff23 Jan 2010
NEWS

Chrysler to join forces with Lancia

Lancia set for Australian return as American-Italian alliance plans global assault

Almost lost amid the hype surround General Motors and Ford at this year's Detroit Motor Show, Chrysler and Fiat CEO Sergio Marchionne dropped a major bombshell. The Italian executive revealed plans to combine the product line-ups of Chrysler and Lancia to create a new global automotive player and confirmed they would head to Australia.


Speaking to Australian industry journal GoAuto, Marchionne admitted his plan was to combine models from Chrysler and Lancia, because neither currently offers a full range. Chysler's smallest car at present is the Sebring midsize sedan, while Lancia's biggest model is the Delta hatch (around the same size Toyota Corolla).


Although Lancia models are not currently available in right-hand drive Marchionne indicated that that situation will change in the future as he tries to grow both brands globally. And that means Australia is definitely on the list of countries set to receive the merged Chrysler/Lancia range.


"As Chryslers? Yes, you will. Fear not, you will," Marchionne told GoAuto. "To the extent that Lancia is not active, not present in any given jurisdiction, Chrysler will be with a combined offering of Lancia and Chrysler."


As part of Marchionne's plan, the company displayed a Delta hatch with Chrysler grille at Detroit. Marchionne confirmed this was a demonstration of how the combination of the two brands would work.


"The rebadge that you saw downstairs, (or) which people called a rebadge, is fundamentally an indication of which way the future will develop," Mr Marchionne told GoAuto.


Chrysler Australia spokesman Jerry Stamoulis told the Carsales Network that while there isn't currently any official comment from the local operation, he hinted news would be forthcoming soon.


"There's nothing to announce," Stamoulis said. "There'll be more information in the future."


But while he couldn't add to Marchionne's comments, Stamoulis was quick to highlight the positives from the latest development in the Chrysler-Fiat marriage.


"It shows the speed of what can be achieved," he said.


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