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Chrysler, Lancia to integrate by year’s end?

01/20/2010, 11:23 AM

By Drew Johnson

It’s no secret that Fiat plans to eventually meld the Chrysler and Lancia brands, but the speed of that global integration might come as a shock to some. According to Chrysler/Fiat CEO Sergio Marchionne, Chrysler and Lancia could essentially become globally integrated by the end of 2010.

Chrysler is well versed in the production of large cars while Lancia specializes in smaller vehicle offerings. Marchionne envisions the combination of those two varying lineups, thereby creating a more full-line automaker.

“In Europe, Lancia is an undersized, underdeveloped brand, with nothing bigger than the Delta,” Marchionne told Autocar. “Chrysler, which has a true global reach, has nothing smaller. Put them together and you have a full line-up.”

Marchionne says the two brands could “converge as early as the end of the year”, aided by the fact that Fiat doesn’t sell the Lancia brand in the United States. Lancia showed a Chrysler-badged Delta model at the Detroit Auto Show, but neither company has announced plans for U.S. availability.

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01/20, 11:34 AM

posted by:

JakeK66

WTF – Lancia is a loser. Good luck wih that Fiat!

01/20, 11:45 AM

posted by:

saabaru1

I wish there was a way to take polls here on LL, so I could ask if ANYBODY likes their styling…

01/20, 11:55 AM

posted by:

ajm11

I think the styling of the Chrysler badged Delta was refreshing to see from Chrysler

01/20, 11:57 AM

posted by:

moparsalesman1

I personally liked the front and side of the car, but i do not like the sloping roof line and everything behind the rear door.

01/20, 11:57 AM

posted by:

Sanandraes2004

The United Auto Workers own 55% of Chrysler. That gives them technical controll over Chrysler. Fiat owns 20% with an option to increase this to 35% in the future. Our Government owns 8%, Canada has 2% and Chrysler’s old crediters own the rest. The way things are going people have the idea that Fiat is controlling Chrysler. Fiat does not have legal controll over Chrysler in any way. What the UAW is probably doing is allowing Fiat to run Chrysler until it becomes profitable again. If Fiat tries to do anything the United Auto Workers does not like, the UAW has veto power to limit Fiat’s power. The UAW can take controll of Chrysler at any time it wishes! Chrysler is building the Fiat 500 because it want’s access to it’s platform to develop a new line of small, economical fuel efficient cars. The 500 itself will keep the Fiat bade on it but Chrysler is likely to build it’s own models based on the Fiat 500’s platform in the not too distant future. I believe sooner rather than later. If Lancia is fully integrated into Chrysler, there is the possibility Chrysler might not have to give it back to Fiat if and when the Chrysler-Fiat strategic alliance comes to an end. The only way Fiat can protect it’s ownership of Lancia is if it puts a special clause in the business transactions to legaly preserve Fiat’s ownership of Lancia as it integrates the brands. If Lancia does become part of Chrysler, it can become their new luxury brand.

01/20, 12:01 PM

posted by:

johnnycanuck

Jake, unfortunately if you go by the Chrysler brand’s recent performance so are they. Do two losers make a winner? Once again I have to defer judgement until Sergio gives me cause to doubt him. At least he’s making decisions and acting on them quickly. Of course one might argue that he doesn’t have much of a choice in that matter.

01/20, 12:02 PM

posted by:

mobile1ph

I want the Panda dammit!

01/20, 12:10 PM

posted by:

saabaru1

..just realized today is just about the one year anniversary of the deal between Fiat and USG.

01/20, 12:12 PM

posted by:

carstuff

I like the 3/4 view on the pic above. A bit too much beaver tooth in the grill but that can be fixed pretty easily.

01/20, 12:16 PM

posted by:

shaver

Fiat bought a fixer upper in Chrysler and they already owned Lancia and all its problems. It makes sense for them to fix them both to increase the value of their holdings! Dont forget how quickly things change, Fiat was beyond a mess. This is going to be interesting

01/20, 12:23 PM

posted by:

Borat

Jake, Lancia is not on government dole like ChryCo. As poorly as it performed, the brand was never closed like Oldsmobile, Pontiac, Saab, Hummer, Plymouth, AMC,………..

01/20, 12:25 PM

posted by:

85ZingoGTR

Niether companies show plans for US availability? So they do it through the Chrysler brands just like Opel is doing with Buick. What difference does it make? Fiat will probably merge Chrysler and Lancia and eventually phase out the Chrysler name in the US in favor of the Lancia name. It wouldnt surprise me and many others if they even noticed Chryslers dissapearance.

01/20, 12:33 PM

posted by:

Yinzer

Looks like the car above is saying “ooh, a piece of candy”.

01/20, 12:59 PM

posted by:

netguru2000

The car in this picture looks kinda cool. The one they showed in Detroit was a dud – squashed Pacifica at best.

01/20, 2:06 PM

posted by:

Borat

@ 85ZingoGTR, I doubt that FIAT will dispense Chrysler name: bailout attached to the name. FIAT needs to repay what 5-7 billions first, not to mentioning whatever was forgiven.

01/20, 2:21 PM

posted by:

AFSOCSARGE

@ 85ZingoGTR
The American 80 year old Chrysler name will not go away and replaced by a foreign brand name that never did well in America ever. The Chrysler 300 has won more awards than any car in Automotive History and The Chrysler Company has had more Motor Trend Car Of The Year Award than GM or Ford.

-Sarge

01/20, 2:46 PM

posted by:

Yinzer

^^ +1. The Chrysler name is actually meaningful to a lot more people than would be Lancia. Although I don’t think that may people would believe that Chrysler won that many COTY awards especially given today’s products. Besides, it would be hard to fit a Lancia logo inside/instead of the Pentastar window at the Auburn Hills HQ….

01/20, 2:56 PM

posted by:

Lionwithoutpride

I’m with Johnny on this one. So far, Mr. Marchionne has left me with the impression of decisiveness and some prescience. I mean, he did predict all the consolidation. Maybe the writing was on the wall, but he was the only one who said it (granted, he was also one of the major forces in bringing it about). We’ll have to wait and see if the final tally of, I believe he said, 6 truly global automakers comes to fruition, but it FEELS like it’s at least half-way done.

Despite most of us accepting how long it takes to change the direction of goliath companies, we all whine about how those moves are too slow to catch the changing whims of the marketplace. I’ve been paying attention to cars for long enough that I remember how much flak Ford took for their ineptness before becoming the darling of comments here. I think Marchionne is showing us change that, for the automotive-sector, is break-neck speed. I still have some ill will towards Chrysler, but they’re far less culpable than, say, GM. That is, if you consider those who have owned Chrysler in the past decade-plus. And, after-all, I am one of the people who sacrificed my ideals (being a libertarian and alls) in favor of preserving American technological know-how. So I guess we’re all going to get the fervently expressed wish of the majority on this site and see how Chrysler fairs with rapid change. Even if it’s a massive failure, it would bolster the case for Ford’s moderate pace of change (consider how many said that the Fusion looked dated when it premiered and compare that to how well the Fusion is doing now).

01/20, 4:25 PM

posted by:

anyclearer

I honestly like their style alot. ten fold more then i like Chrysler or toyotas or fords.

01/20, 5:36 PM

posted by:

bigdman

Johnny mayb 2 losers does make a winner like 2 negatives makes a positive.

BTW i like Lancia’s styling alot… I know nothing about the cars tho but the stylings r cool i think then again i’m young and stupid some might say…

01/20, 7:13 PM

posted by:

zoomzoomer

Looking at Lancia’s current lineup, I can’t imagine that the Ypsilon or Musa could by any stretch of the imagination be sold here as Chryslers.. but a Delta sedan might make a nice entry-level Chrysler, and the Phedra could easily be renamed “Voyager” and sold as a sub-T&C Mazda5 competitor.

01/20, 7:51 PM

posted by:

mitzo

Way to destroy Lancia.

01/20, 8:23 PM

posted by:

85ZingoGTR

AFSOCSARGE that is a good point. The 300C was the best thing to happen to Chrysler. Its a shame that Chrysler didnt wise up and base their other models off of such a succesful car.

01/20, 10:07 PM

posted by:

BuyUSA

I think the big question now is what happened to the 200C? Forget about the concept 200C’s wacky instrument panel. Human Beings aren’t quite ready for that. If the Sebring replacement looks just like the 200C, on a Fiat platform (I’m assuming) or a revised LX platform, with the Pentastar V-6 under the hood, then that would be a complete 180 turn and there should be no problems going forward.

01/20, 10:21 PM

posted by:

BuyUSA

Hint to Chrysler Executives: 200C with an optional turbocharged Pentastar V-6.

Ya know, just to compete with Ford and GM…

01/20, 10:24 PM

posted by:

ACRcpe45

Sanandraes2004, your comment is not accurate and on the verge of agenda driven.

The UAW does not directly 55% of Chrysler now or or ever for that matter. The VEBA does. The VEBA is a pension fund, which has no voting rights, and plans to sell their equity as soon as it is economically feasible. Please do some research next time instead of believing the crap spewed on Jalopnik.

Thanks!

01/21, 4:51 AM

posted by:

JohnnyViking

Sanandraes2004: Remember that Fiat would not have agreed to give Chrysler technology if it weren´t for full control. Chrysler would not have been given funding from the US gov if it weren´t for Fiat´s tech. Fiat even demanded the workers to reduce their pay to southern states level – if not Fiat would have backed out of the deal.

Like it has been pointed out here, Sergio is action-oriented and quite clever. I think Lancia will stay in Europe and Chrysler will act as global brand, except Europe. In countries like Germany, Spain, France and Italy, Lancia is selling quite good and has a reputation of being a premium small car, while Chrysler doesn´t sell anything in these countries – except Jeep. Lancia also got a bit lucky and used Carla Bruni in a commercial the same week that she got married to the French president – that helped Lancia becoming a “woman´s car”. The Delta used to be the best rally car in the world and has several records. The new Delta is a luxury car without the sporty heritage.

I´m more interested in Alfa Romeo that deserves a higher priority, higher level of engines, and more sporty models – linked to the Maserati and Ferrari brand. Sergio should seriously consider giving Alfa Romeo rwd and some tech from these exotics. As well as a small MX5/Z4/SLK killer.

01/21, 2:35 PM

posted by:

Lyndongolden

Chrysler dealers need something fresh, funky, daring, economical, and exciting NOW…no, make that YESTERDAY. Is there not a state of panic and urgency in all of Chrysler’s upper-management meetings nowadays? How much effort is required to do a few mods which would make the Lancia saleable here in the US? Who cares if the Lancia design fits a long-term branding strategy if it can help stop the bleeding RIGHT NOW. Keep those engineers in the office overtime and get fresh product to your dealers, guys!

 
 
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