Fiat and Chrysler to spawn seven new models

The cars – which will be built at Chrysler’s North American plants — will be developed as a result of the agreement between the two companies, under which Fiat has taken a 35 per cent stake in Chrysler.

Four of the vehicles will be branded as Chryslers, while the remaining three are expected to be either sold as Fiats or Alfa Romeos.

Fiat will reportedly supply platforms for four of the products, but there has been no information about design, vehicle segments or estimated launch.

However industry insiders have suggested that the product plan being finalised between the two brands will see the Fiat 500 produced at Chrysler’s Toluca factory after the PT Cruiser currently built there is phased out later this year.

However Chrysler’s Australian boss, Gerry Jenkins, says the local arm has as yet little detail of what is happening at head office.

“All we know is that our top executives are in talks this week with Fiat executives and at this stage there is no further information,” Jenkins says.

“I don’t have a whole lot of detail. We are having correspondence with head office but there is nothing concrete I can say at this stage.

“But we’re all very excited. (The Fiat agreement) is a tremendous opportunity.

“It’s a perfect marriage and I think the prospects are absolutely outstanding.”

Fiat’s stake in Chrysler has not included any money being handed over, with the Italian badge’s involvement being repaid by more doors being opened to international markets and shared technology.

Chrysler was one of the beneficiaries of the US government bail-out earlier this year, receiving US$4 billion in loans, however experts believed that the company would collapse without a strategic partnership.

However a Fiat executive has warned that Italy’s automotive industry could lose 60,000 jobs – around 20 per cent of the workforce — unless the government implements a rescue package.

”If the government doesn't intervene, the risk that 60,000 workers in the automotive sector will have to stay at home is real,” Fiat chief executive Sergio Marchionne was quoted by Italy's Ansa news agency as saying earlier this week.

"We are expecting measures for the entire automotive sector, which is currently selling 60 per cent less than last year," he said.

“It's not a case of helping Fiat but of re-starting an entire production sector and the whole economy.”

Fiat has slashed production recently and cut its forecasts because of the global auto slump, and announced earlier in January that it would not pay a 2008 dividend to shareholders.