Automotive News is reporting that Chrysler just announced that it has reached a global alliance deal with Italian automaker Fiat. No details were given, but they will likely be forthcoming.
[Update] Or not. Turns out that somebody jumped the gun, and an hour or so later Automotive News posted another story detailing that Chrysler and Fiat have worked out a “framework,” but not a finalized deal.
An alliance with Fiat could mean very good things for Chrysler, primarily access to inexpensive, fuel-efficient cars. The lack of competitive small cars has been a thorn in Chrysler’s side since fuel spiked last year, and has been a sword of Damacles hanging over the company for years. The company’s current small car offering, the Dodge Caliber and its derivatives, is a terrible car in most respects. Rebadging cars like the Punto as Chrysler products would give the company a shot in the arm it desperately needs, and also help it weather any future fuel storms.
The other side of the whole thing is the possibility of Fiat coming back to the U.S. in some capacity. More details as they become available, but this is good news from where I sit.
