Chrysler to live on as MPV brand

Chrysler will live on for at least the next five years, it has been announced, despite rumours that Fiat Chrysler Automobiles (FCA) was about to pull the plug on the famous US car-maker.

According to FCA boss Sergio Marchionne's mid-term plan revealed on Friday in Italy, Chrysler will shift its priorities from sedans to people-movers and continue to work closely with Google Waymo brand to develop its fully autonomous driving aids.

Confirming that a further 62,000 Chrysler Pacifica MPVs would be manufactured for its partner Waymo, FCA announced that the Google-owned Uber rival would launch its ride-hailing app and service before the end of this year.

Marchionne told investors at the mid-term presentation that both Chrysler and fellow US brand Dodge would live on.

"Dodge needs to continue the particular space as a performance brand, and we need to continue to build on that core skill. The minivan business space will be filled by Chrysler, filling the mobility solution in the US market.

"Those two brands are not in question but they're local NAFTA brands [North American Free Trade] and need to be developed for local market conditions. Our view is that 70 per cent of the US market is already non-sedan, so to try and build traditional sedans is not helpful. Brands like Dodge can play a role there because of their performance heritage."

During the presentation, the FCA CEO revealed that a mystery third model would join the 300 and Pacifica in its diminished line-up, and many are tipping it to be either a new SUV or another people-mover.

Marchionne also confirmed that FCA is negotiating with Waymo to offer Chrysler Pacificas equipped with driverless technology to the public.

If successful, Chrysler could -- overnight -- become a market leader for driverless vehicles.