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Sounds like it was taken out of context. He did probably mean they are considering taking the Fiat brand out of the US, and the Chrysler brand out of Europe. Not both out of both markets.

Fiat isn't catching on here as they had hoped, Chrysler has little presence in Europe. The Fiat models being sold in the US could fit into either the Dodge or Chrysler brand lineups with a few cosmetic changes, while the Chryslers being sold in Europe could (and already are in some places) easily be sold as Lancias.

The US dealers who just spent a bunch building stand-alone showrooms for Fiat wouldn't be too happy though.
 
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