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Chrysler model line to be made over

Detroit Free Press Original article ›

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Chrysler's model lineup will show a number of small cars. The Fiat 500 will be made at the plant in Toluca, Mexico. And Fiat 4 cylinder engines will probably be made at Dundee plant.

The new Chrysler that is emerging from bankruptcy with government help under Fiat's Marchionne.

11/10/2006

Marchionne has kept many of the managers from the previous Chrysler. Jim Press is deputy CEO and adviser. He came from Toyota. Everything else will change. He is flattening the organization structure to improve communication and speed. Smaller car lineup will replace the prior lineup, and Fiat's engine technology will provide help for fuel efficient cars.

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Fiat's 35% stake in Chrysler was obtained with an offer to retool aChrysler plant and offering its engine and transmission technology for small cars. Fiat has an option to take a 55% stake in Chrysler. Its a low cost way for Fiat to sell its popular Fiat 500 and other small cars in the USA.

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The Fiat 500- the focus of Fiat's strategy in Europe 2012-2015

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Marchionne and Fiat managers decide to focus on new models of the Fiat 500 to increase sales in Europe, Asia and Latin America. Marchionne says this is "not a strategy for the fainthearted," and Fiat will take up the fight. The eurozone crisis has led to declining auto sales in Europe and a shift to price sensitive cars. Italian factories are operating at only about 45% capacity on average and Fiat is now taking on the new challenge of exports. A similar strategy is being followed for the Jeep model made in the U.S. with a new focus on export markets.

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