Italy’s Fiat has already expanded its auto empire to include Chrysler – with Opel likely to join in the coming months – but a new report reveals Fiat’s lineup expansion could stamp out at least one of its existing brands.
According to a recent Reuters report, a Fiat-Opel merger would likely spell the end for Fiat’s Lancia premium brand. Fiat CEO Sergio Marchionne has reportedly told those close with the Opel merger talks that the three-way merger of Fiat, Chrysler and Opel would mean the ousting of the Lancia brand.
Lancia is by no means Fiat’s most successful brand, selling a mere 100,000 units last year – roughly the same General Motors’ Saab brand. However, Alessandro Alexandre, head of Lancia’s dealer association says the reports of Lancia’s demise are “nonsense”.
But with Fiat’s expansion plans, there may not be room in the Fiat stable for Lancia. As General Motors has discovered with its multiple brands, resources for r&d and marketing become all too thin, especially for a division that offers essentially nothing but re-badged vehicles.
