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Fiat 500 to test Chrysler


Chrysler Canada Inc. plans to begin selling the Fiat 500 subcompact in early 2011, providing an early test of how the alliance between the two auto makers will address the most glaring problem at the No. 3 Detroit company: the collapse in sales of its passenger cars.

The Fiat 500 is crucial for Chrysler Canada because of the particularly deep slide in passenger car sales that has afflicted all three of the Detroit auto makers here. As of the end of July, Chrysler, Ford Motor Co. and General Motors of Canada Ltd. delivered just 25 per cent of the passenger cars sold in Canada, a staggering drop from the 50-per-cent market share they held in 2000.
Fiat 500 to test Chrysler - The Globe and Mail

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Chrysler to make Fiat in Mexico: report Wall Street Journal


NEW YORK (Reuters) - Chrysler Group is planning to produce Fiat SpA's (FIA.MI) Fiat 500 subcompact at a Chrysler plant in Mexico, the Wall Street Journal reported, citing people familiar with the matter.
Chrysler is also considering what other Fiat models to introduce to the U.S. market, under directions from its Italian partner, the paper reported on its website on Sunday.

Plans also include making a small Fiat engine for the 500 at a Chrysler plant in Trenton, Michigan, and building a Fiat-derived compact car slightly larger than the 500 in the United States, a source told the paper.

The Toluca, Mexico plant, which currently makes the Dodge Journey crossover and PT Cruiser, is an attractive home for the 500 because cars could be exported to South and Central America where the Fiat brand is popular, the Journal reported.

Fiat acquired a 20 percent stake in Chrysler and entered into agreements to give it access to Fiat technology and platforms. Chrysler filed for bankruptcy in April.

Chrysler representatives were not immediately available for comment