Fiat reconsiders its brands’ roles, Chrysler focuses on existing portfolio

Although, Fiat SpA is about to merge with Chrysler Group LLC, starting with the model lines for its Chrysler and Dodge brands in the U.S., the Italian carmaker is reconsidering the roles of its multiple brands.

A top executive of Chrysler announced in an interview at the Detroit auto show, that plans for a small car called the Chrysler 100 for the near term has been suspended by the company, because company prefers to focus on its existing portfolio of three models, which include the Town & Country minivan, the Chrysler 200 and Chrysler 300.

Al Gardner, who is currently the Chief Executive of Chrysler after taking over the position in November 2013, said: “As far as Im concerned, the 100 doesnt happen in the short term. The next thing we look at is what to do next with the 300, and then what do we do with the Town & Country.”

The Chief Executive Officer of Fiat SpA – Sergio Marchionne – has suggested that the combined company wants to reduce the overlap between the Chrysler and Dodge brands. Both Fiat and Crysler have their own brands of minivans – Dodge Caravan and respectively, the Town & Country. Mr. Marchionne expressed his belief that only one of them would survive, which provoked speculations and rumors about which of the two brands would get the next-generation minivan.

On Monday, at a news conference, Fiats Chief Executive also explained that Chrysler expects to make a final decision on where to build the next-generation minivan during this quarter of the year. Chrysler makes its current ones in its factory situated in Windsor, Ontario. Mr. Marchionne also shared that the location where the next minivan will be built is still to be settled, and is subject to negotiations with the Canadian Auto Workers union and Canadian government officials.

On the other hand, the Chrysler had planned adding a brand crossover, which is yet to be launched. The new Chrysler 100 is also planned to be a hatchback, which is the reason it is expected to get an indifferent reception from customers in the U.S. He commented: “Its a great product but not when you look at it from a financial perspective.”

Fiats CEO indicated that the companys Lancia brand is also to be reduced and made more efficient. The Lancia models will no longer be supported by the Chrysler brand in Europe.

According to Bloomberg, the current share price of Fiat SpA is 0.15% up, and its one-year return rate is 55.11% up.