The long-awaited return of Fiat and Alfa Romeo is due to get underway soon following the signing of the new alliance with Chrysler, and word of the first cars to be brought in is finally emerging. While most of the Italian cars will be skewed towards the smaller end of town, one of the most anticipated, the Alfa 169 (the replacement for the aging 166), will be a large, luxurious, RWD saloon.

Reports coming out today claim that the Alfa Romeo 169 could be manufactured at Chrysler’s Brampton plant in Ontario. According to research firm IHS Global Insight, the 169 will most likely ride on the RWD platform that underpins the Chrysler 300 and Dodge Charger models and will be priced around the $40,000 mark.

If the research firm’s predications prove true, the new Alfa Romeo 169 would likely be powered by Chrysler’s new Pentastar V6 engine and would share much in common with the next-generation Chrysler 300 sedan due next year. Production volumes would be low, with only about 10,000 units expected annually.

Chrysler spokeswoman Mary Gauthier told the Financial Post that the company is still reviewing production plans and no final decisions on building Fiat vehicles in Canada have been made. Tax incentives and loan commitments to the Canadian government, however, suggest that it is a very real possibility.