Fiat unveils plan for Chrysler Group

Fiat's strategy to revive the Chrysler Group of brands is finally out in the open, but the Italian corporation now faces the hard work of putting its plan into action. Under the blueprint there will be dramatic changes across all brands, with models either updated significantly, scrapped entirely or replaced with Fiat technology.

Among models set to be dumped are the Jeep Patriot and Compass (which will be replaced by one new model), Jeep Commander, Chrysler PT Cruise, Dodge Caliber, Dodge Dakota and Dodge Viper.

Chrysler will have its position as the company hero brand reinforced with a radical overhaul of its range. It is expected that Fiat will use Alfa Romeo platforms to underpin the next generation of Chrysler products.

Among the changes will be a new Chrysler small car using the Alfa Romeo MiTo architecture, a sedan replacement for the PT Cruiser using the Alfa Romeo Milano platform and a new version of the Sebring using the forthcoming Alfa Romeo Giulia as the base.

Chrysler has also said it will add a midsize SUV by 2013. The plan is to use Fiat technology for this new addition and that adds weight to rumours Fiat is working on an SUV for the Alfa Romeo brand.

Contrary to reports prior to the announcement, Dodge won't be turned into a sports-orientated brand. Instead it will be pitched as a 'lifestyle' brand to act as the Chrysler Group's volume seller.

The Challenger, Charger, Journey, Nitro and Grand Caravan are all set for major updates by the end of 2011.

Getting the chop will be the Dakota SUV and Caliber hatch but both look likely to be replaced by all-new models. Fiat will use its current platforms to underpin new Dodge models, including a small car by 2013, new compact sedan (replacing the Caliber) and Avenger. There will also be a new fullsize SUV for Dodge next year.

There was mixed news for fans of the Dodge Viper with production of the current car set to cease in July next year. But the V10 coupe will go out with a bang, with the final 500 examples built promised to be a special edition.

The Viper story doesn't end there though, because Dodge has left the door open to resurrecting the nameplate in 2012, using architecture and technology from Fiat's performance brands, Maserati and Ferrari.

The news for Jeep is less severe, with only three models set to be axed; and each was long expected. The nearly identical Patriot and Compass will both be dropped and replaced instead with one model on a Fiat platform.

The other model biting the dust will be the Commander, which has been expected to die since long before the Fiat takeover of the brand.

Joining the Jeep range will be a new compact SUV, most likely based on the Fiat Panda. Fiat technology will also sit underneath a new version of the Cherokee (known as Liberty in the US market), due for 2013.

Next year will see the introduction of the previously revealed all-new Grand Cherokee. The other major news from the epic eight-hour press conference was the confirmation that the Fiat 500 will go on sale in America late next year. It will be sold in selected Chrysler dealers using bespoke marketing and sales techniques. The drop-top 500C will arrive in 2011, before the Abarth performance version lands in 2012.

What this all means for Chrysler Australia is still not clear with further meetings planned between the local operation and the US parent. The company looks set to sever its remaining ties with Daimler and move from its current headquarters in Melbourne's Mulgrave to share space with Fiat truck brand Iveco in Dandenong.

It is also understood that Chrysler Australia will remain a factory-backed operation, instead of being integrated with Ateco Automotive, the Australian distributor of Fiat, Alfa Romeo, Maserati and Ferrari.

Given the size and scope of this announcement, expect the full ramifications to unfold over the coming weeks and months. We'll keep you updated as more information emerges.

To be added
Jeep compact SUV (2013)
Jeep small CUV to replace Compass/Patriot (2013)
Jeep Liberty/Cherokee (2013)
Chrysler small car (2013)
Chrysler compact sedan to replace PT Cruiser (2012)
Chrysler Sebring (2013)
Chrysler midsize CUV (2013)
Ram midsize unibody pickup (under consideration for 2011)
Ram large and small commercial van (2012, using Fiat product)
Dodge small car (2013)
Dodge compact sedan to replace Caliber (2012)
Dodge Avenger (major update for 2010, replaced by Fiat product 2013)
Dodge full-size CUV (2010)
Fiat 500 (2010, 500C in 2011, Abarth 2012)

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