Interesting rationale, so you mean that die hard fans would buy a Dodge instead of a better and less expensive alternative; even thought the dodge was inferior and more expensive? Because that has obviously not been the case so far in Australia....
Had die hard fans been so crucial, they would have bought Dodges in Oz even thought their "marketing was crap", and kept the brand a viable one in Australia. I read a comment from a guy that didn't even know that Dodges were sold in Australia, 'cause he never ran across one! OTOH, the same article states that FIAT sales have been increasing, simply by offering the giulietta and the 500. Granted, it's an easy increase in sales starting from basically nothing, but it means that people are more than willing to buy FIATs.
Having said that, I personally think that there is space for both brands in Australia. Keep Dodges for Holden-buying downunder muscle car lovers, and FIATs for people that want an alternative to VW.
AND I didn't read anything from that interview that could be misconstrued as evidence that Dodge is being dropped, so all this ain't nothing more than a lot of noise out of an unsubstantiated rumor.