Chrysler and Fiat move closer to integrating their operations. 07/19/2010
Automakers Chrysler and Fiat are set to unveil a five-year plan on Wednesday that calls for closer integration of their operations, including their finances, manufacturing and sales strategies.
The Italian automaker Fiat, which has a 20 percent stake at Chrysler, will help the American company get back on its feet after financial troubles led to a government bailout during the recession, analysts told The New York Times.
The Automotive News, meanwhile, reported that the two companies are expected to announce a new line up of cars in the next three years.
On top of the list is the luxury brand Alfa Romeo, which plans to build a mid-sized sedan and station wagon at Chrysler factories. This development marks the return of Alfa to the U.S. after almost two decades, the news provider said.
Analysts expect the two companies to formally announce the arrival of a smaller version of the Fiat 500 in the U.S. and possibly a compact sedan from a Fiat joint venture factory in Serbia by 2013.
Chrysler, one of the three U.S. automakers severely hit by the recession, has been trying to regain sales and market shares. Company data shows that it had $5 billion cash in late March, up from $4 billion when it emerged from bankruptcy in June 2009.