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Chrysler and Lancia Brands to Merge in Europe
11:07 a.m. EDT, October 06, 2009

In its continued bid to rehabilitate the troubled Chrysler brand, Fiat S.p.A. plans to closely integrate Chrysler with its high-end Lancia line overseas via shared products ranging from hatchbacks to larger sedans.

The news, disclosed in a report by Luca Ciferri for Automotive News, indicated Chrysler and Lancia will share both products and distribution in Europe, a move facilitated by the appointment of Lancia CEO Olivier Francois to head the Chrysler brand.

Proposed products include a replacement for the Lancia Thesis, its flagship sedan that ended a seven-year production run this summer. The Chrysler 300 could fill that slot, just as the Sebring could be the basis for a successor for a new European product or the Lancia Ypsilon could lead to a new small Chrysler.

The integration of the lines should serve to bolster sales for both parties. Lancia sold approximately 110,000 units from 2005 to 2008, but has experienced flat sales from January to August 2009.

Francois is a marketing expert who has managed to keep sales of the Lancia brand relatively stable in the face of the current global economic crisis. The merging of product concepts will undoubtedly further his work with Lancia while serving to revitalize Chrysler's reputation it the wake of its bankruptcy proceedings.


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