MotorAuthority

Fiat keen to draw SUV know-how from Jeep

Posted Thu Mar 19 2009 10:44 PM by Kenneth Hall

Should Fiat engage in a deal with Chrysler, the SUV knowledge it gains from Jeep would be extremely valuable

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.

Story Tags:

• Alfa Romeo SUV
• Cerberus
• Cerberus Capital Management
• Chrysler
• Crossovers
• Fiat
• Fiat Group
• Industry
• Jeep
• SUVs

Reader Comments

• Wed Oct 15 2008 11:16 AM

  NoNameDenton says

  Didn't take Cerberus long to whore out Chrysler.

• Wed Oct 15 2008 2:54 PM

  Layne says

  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.

• Wed Oct 15 2008 7:42 PM

  NoNameDenton says

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

• Thu Oct 16 2008 2:49 AM

  InkMaster says

  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.

• Fri Oct 17 2008 10:37 AM

  NoNameDenton says

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

• Fri Oct 17 2008 11:22 AM

  Jim says

  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.

• Fri Oct 17 2008 4:09 PM

  NoNameDenton says

  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.

• Thu Mar 19 2009 11:02 PM

  jgold says

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