Fiat and Chrysler to produce seven cars for North America

| Tue, 01/27/2009 - 09:28

The partnership between Italy's Fiat and American Number Three automaker Chrysler will initially produce seven automobiles for the North American market, Automotive News reported on Monday.

The trade publication and website added that four vehicles will be produced under the Chrysler marque and three as Fiat and Alfa Romeo cars.

All seven will be made at Chrysler plants and sold through Chrysler, Dodge and Jeep dealerships.

No decision has yet been made on a production timetable nor regarding the volume of production, Automotive News added.

Fiat announced last week that it had struck a preliminary non-binding agreement with the struggling American carmaker to create a global partnership in the production and distribution of automobiles and other motor vehicles.

The non-cash accord calls for Fiat to take a 35% stake in the Number Three American carmaker in exchange for Fiat's platforms for its fuel-efficient, small and medium-sized compact cars, which will fill a gap in Chrysler's range of models.

The accord is slated to be formalised sometime in April and would give Fiat access to Chrysler's assembly plants as well as its sales and service networks.

These are all necessary for the Italian automaker's goal of bringing Alfa Romeo back to the US market and introducing its popular new Fiat 500 city car there, both of which need to be produced in the US to be profitable.

Fiat is also reported to have an option to acquire a further 20% in Chrysler should the partnership prove successful.

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