Chrysler to debut first Fiat-designed car

Detroit : Chrysler Group LLC, the US automaker run by Fiat SpA, plans a Detroit auto show debut next month for a new car derived from the Italian company's Lancia brand, three people familiar with the situation said.

The vehicle would be the first demonstration of how Fiat's designs will be incorporated into Auburn Hills, Michigan-based Chrysler's lineup, said the people, who declined to be identified because the details aren't public.

Integrating the Chrysler and Lancia brands around the world is a pillar of Chrysler's business plan for ending losses after bankruptcy. Vehicles sold as Lancias in Europe eventually would be marketed elsewhere as Chryslers, Chief Executive Officer Sergio Marchionne said last week in Washington.

"There's no doubt that in the mid-sized car and small-car markets, the company is at a disadvantage," said Michael Robinet, an analyst at consultant CSM Worldwide Inc. in Northville, Michigan. "It's in their best interest to bring new product to bring out some new models as quickly as possible."

Rick Deneau, a Chrysler spokesman, declined to comment.

Unveiling the car at the North American International Auto Show, which runs from January 11 to January 24, would give Marchionne a chance to spotlight Fiat-Chrysler collaboration at the main US forum for promoting new models.

New models

The vehicle in Detroit will be badged as a Chrysler, one person said.

Chrysler wants to get the vehicle in showrooms quickly, the people said. While four new US models are on the way, three won't be available until the end of 2010, blunting efforts to boost sales after Chrysler's 2009 domestic market share fell to 9 per cent through November from 11 per cent for all of last year.

The automaker's five-year business plan calls for having designs from Turin, Italy-based Fiat account for more than half of global sales by 2014.

Combining with Lancia would help expand the Chrysler brand to seven models by that year from five now, according to Chrysler's plan.