Rumor: Fiat to link with Chrysler

Last year, Allpar noted that Fiat representatives had been visiting Chrysler plants, including the one in Newark, Delaware, that produced the Durango until December. Numerous possibilities were aired, including the contract construction of Fiat’s commercial trucks in the United States, and a partnership where Fiat would supply its successful A and B class cars to Chrysler, giving it a presence in the United States for the first time in many years. Fiat was planning to re-launch Alfa Romeo in North America, but has postponed that until 2011.

Automotive News recently reported that Fiat and Chrysler may join together, bonded by a Fiat share in Chrysler, with the American firm building its own version of the Fiat 500 A-car in the United States, and possibly distributing the Alfa Romeo through its network of dealers (or, more likely, using its infrastructure to support Alfa dealers). Chrysler could, in return, be able to use Fiat’s distribution channels in Europe and Latin America.

Chrysler has previously expressed interest in smaller cars, but only with a partner. Fiat, whose strength is in smaller cars and which has no presence in the U.S. and Canada, is an almost perfect complement. 

This is likely one of many partnerships Chrysler is exploring as it tries to sell a full carline with limited resources.