2012 The Fiat 500 - A Blast From the Past

As part of Fiat's gradual acquisition of the Chrysler Group, the Italian automaker must expand Chrysler's model line up to include several fuel efficient models. The U.S. government literally gave Fiat a 20 percent stake in Chrysler in exchange for that promise, with Fiat not required to contribute a single lira to the cause.

The groundwork for the agreement is beginning to be revealed, yielding the following arrangements between the two automakers:

• Fiat will gain 35% ownership in Chrysler LLC without any exchange of cash.
• Chrysler will gain access to Fiat small car technology which will include four models that will be branded and sold as Chrysler LLC vehicles. More than likely, Dodge dealers would see a minicar, a subcompact and a compact model while Chrysler dealers would have a midsize replacement for its Sebring. The Dodge Avenger, a twin of the Sebring, would receive a similar model.
• The Fiat 500, the 2008 European Car of the Year, will be built a Chrysler factory in Toluca, Mexico. The car will be sold in the United States and Canada, perhaps as a Dodge model, but more likely as a Fiat.
• Select Chrysler, Jeep and Dodge dealers would be chosen to sell a pair of Alfa Romeo models, Fiat's sporty car brand.
• Chrysler could gain access to other global markets, pairing its models with Fiat's. Both automakers understand that going forward with a partner increases their chances of succeeding, thus the incentive to make this plan work is quite high for each.

2012 The Fiat 500 - A Blast From the Past