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Fiat keen to draw SUV know-how from Jeep

Fiat keen to draw SUV know-how from Jeep

Kenneth Hall March 19th, 2009 Kenneth Hall By Kenneth Hall Author March 19th, 2009
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December 31st, 1969 Earlier this week Chrysler CEO Bob Nardelli mentioned how the proposed $10 billion deal with Fiat could be just what the company needs to bring it back from the brink of bankruptcy. While Chrysler would be gaining Fiat's vast global distribution network, as well as new technology to boost efficiency, Fiat would also be gaining things other than the 35% proposed stake in Chrysler. The Italian auto giant would be able to use Chrysler's Jeep and minivan lines to complete its lineup overseas, reports the Detroit Free Press. These models may be integral in whether or not a deal materializes between the two companies, as Fiat is in desperate need of larger cars for emerging markets such as Russia and China and we all know about Chrysler’s needs. Should Fiat engage in a deal with Chrysler, the SUV knowledge it gains would be extremely valuable. Currently, Fiat must draw on other brands for help in building its SUV models but taking part ownership of Chrysler might allow it to keep its designs in-house. Adding Jeep to its fold could drastically reduce Fiat’s operating costs, while also giving the carmaker a bevy of SUV platforms to work with. Such a move would be both expensive and risky, but the SUV expertise gained from Jeep could prove crucial to development of vehicles like the upcoming Alfa Romeo soft-roader. Nardelli has previously stated that should an alliance with Fiat not come to fruition, Chrysler will still be able to recover from the current economic crisis. Nevertheless, many commentators are describing the Chrysler-Fiat deal as essential to both companies, and with Fiat hungry for Chrysler's SUV expertise it may just come to be.Alfa Romeo SUV rendering
Reports emerged earlier today indicating Chrysler might sell its key brands, such as Jeep, purchased from Renaul in 1987

Reports emerged earlier today indicating Chrysler might sell its key brands, such as Jeep, purchased from Renaul in 1987

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Earlier this week Chrysler CEO Bob Nardelli mentioned how the proposed $10 billion deal with Fiat could be just what the company needs to bring it back from the brink of bankruptcy. While Chrysler would be gaining Fiat's vast global distribution network, as well as new technology to boost efficiency, Fiat would also be gaining things other than the 35% proposed stake in Chrysler.

The Italian auto giant would be able to use Chrysler's Jeep and minivan lines to complete its lineup overseas, reports the Detroit Free Press. These models may be integral in whether or not a deal materializes between the two companies, as Fiat is in desperate need of larger cars for emerging markets such as Russia and China and we all know about Chrysler’s needs.

Should Fiat engage in a deal with Chrysler, the SUV knowledge it gains would be extremely valuable. Currently, Fiat must draw on other brands for help in building its SUV models but taking part ownership of Chrysler might allow it to keep its designs in-house.

Adding Jeep to its fold could drastically reduce Fiat’s operating costs, while also giving the carmaker a bevy of SUV platforms to work with. Such a move would be both expensive and risky, but the SUV expertise gained from Jeep could prove crucial to development of vehicles like the upcoming Alfa Romeo soft-roader.

Nardelli has previously stated that should an alliance with Fiat not come to fruition, Chrysler will still be able to recover from the current economic crisis. Nevertheless, many commentators are describing the Chrysler-Fiat deal as essential to both companies, and with Fiat hungry for Chrysler's SUV expertise it may just come to be.
Alfa Romeo SUV rendering
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  • alfa romeo suv preview 001

Tags: Industry, crossovers

Posted in: Chrysler, Fiat, Jeep, News, SUVs


Comments (8 total)

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  1. ma_NoNameDenton avatar by NoNameDenton #1, Posted: 10/15/2008

    Didn't take Cerberus long to whore out Chrysler.

  2. ma_Layne avatar by Layne #2, Posted: 10/15/2008

    Tata I could see, Fiat would be a mistake, and I damn well don't want my Nissans being related to Chrysler products! Yuck! Usually I'm not a brand loyalist, but for Nissan I make an exception lol.

  3. ma_NoNameDenton avatar by NoNameDenton #3, Posted: 10/15/2008

    I would have no issue with Fiat being here with Chrysler, then Alfa would be in dealerships faster

  4. ma_InkMaster avatar by InkMaster #4, Posted: 10/15/2008

    Still I don't understand why Chrysler decided to get rid of the Viper - it couldn't be their least profitable model, could it? Atleast it was the one thing that 'spiced up' their model range, now its nothing but boring, bland people movers.

  5. ma_NoNameDenton avatar by NoNameDenton #5, Posted: 10/17/2008

    Was does Renault want Jeep, only really well known in America and SUVs are not popular

  6. ma_Jim avatar by Jim #6, Posted: 10/17/2008

    NoName: Nissan/Renault have plenty of cars/min-vans they can sell in the US, but lack the production facilities and the distribution network. Importing from Europe or Japan is too expensive due to currency values.

    Jeep's dealer are usually standalone or paired with Chrysler. If GM kills Chrysler those dealers will need another brand to sell so NIssan/Renault have an instant channel for their vehicles.

  7. ma_NoNameDenton avatar by NoNameDenton #7, Posted: 10/17/2008

    Nissan has quite a few dealerships, Renault has none because it is not sold here in the States anymore. I know about currency exchange thanks, why VW is building a plant here.

  8. ma_jgold avatar by jgold #8, Posted: 3/19/2009

    didn't think about how sweet a Fiat 5-cycl diesel in a Jeep. . .

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