Lancia Motor Club

Chrysler and Lancia brands to share products in Europe
Luca Ciferri
Automotive News Europe
October 6, 2009 10:31 CET

TURIN -- Fiat S.p.A. aims to integrate more closely Chrysler brand with its upscale Lancia marque in Europe with the two brands likely sharing products from small hatchbacks to large sedans. The appointment of Lancia CEO Olivier Francois as Chrysler brand boss is a step toward the goal, a source at the Italian company said.

Chrysler and Lancia in the near future will share products and distribution in Europe, the source who has direct knowledge of the matter told Automotive News Europe.

Lancia could derive a replacement for its Thesis flagship from the next-generation Chrysler 300, the source said. Lancia stopped building the seven-year-old executive sedan in the summer.

Fiat also is looking at other product sharing opportunities for Chrysler and Lancia.

Lancia could get a car derived from the Chrysler Sebring successor and Chrysler could get a version of the next-generation Lancia Ypsilon small car, due in Europe late next year.

Upscale Chrysler

Chrysler brand's former CEO Peter Fong said earlier this month that Fiat aimed to take the brand more upscale toward Cadillac.

On Monday, Fiat and Chrysler Group CEO Sergio Marchionne replaced Fong with Francois as Chrysler brand CEO in a shakeup that also saw the head of the Dodge brand, Michael Accavitti, leave the company and the creation of a Ram truck brand.

Francois keeps his job as Lancia CEO and stays head of marketing for Abarth, Alfa Romeo, Fiat, Fiat Professional light vans and Lancia.

He will also coordinate worldwide marketing strategies, brand development and advertising for the Chrysler, Jeep, Dodge car and Dodge Ram brands.

Lancia sold about 110,000 units a year from 2005 to 2008. From January to August, Lancia's Western Europe sales were flat at 79,683 units in an overall market that declined 6.6 percent, according to ACEA, the European automakers association.

Francois, a marketing expert, is credited with keeping the brand's sales stable during the economic crisis, helped by some very successful advertising campaigns.

Lancia's advertising has featured Carla Bruni, wife of the French president Nicolas Sarkozy, and Hollywood actor Richard Gere.

Francois, a Frenchman, joined Fiat Group Automobiles in 2005 from Citroen, where he was the French brand's Italy chief.
 

Is this good for Lancia (FIAT)?   Chrysler's previous relationship with Mercedes failed.... 

Depends if the emphasis is on the Lancia Brand or Chrysler.

Brian
8227 8)

Two observations.  The Sebring is not a good car - I fear for any Lancia based on it.  Francois has a lot on his plate now, perhaps too much.

So, on balance, I'm worried.  Chrysler is a hugely tarnished and downmarket brand, with products that have, rightly, had a poor reception in Europe.  I see far more in this for Chrysler than I do for Lancia, though if they can use this to expand Lancia into North America, there may well be benefits.  However, given US tastes in cars, one wonders...

i actually think this might be a good deal for Lancia. Chrysler get the small Ypsilon replacement & in return Lancia get a chassis to base their replacement to Thesis, & it'll most definitley be RWD. The Thesis ofcourse wasn't going to be replaced at all, Delta becoming the largest saloon/hatch Lancia make.

i would agree the Sebring is a woeful product, but i think we can all hope when FGA head a replacement that any Lancia based on the car will be good enough to wear the Lancia badge.

Not sure how far along the replacement for the Phedra is, but i would think that as the next generation Phedra isn't going to be a collaboration between PSA & FGA then Fiat could use the Voyager /Grand Voyager platform?

Plus Lancia have no 4x4, & i feel there is still a market for 4x4's, so teaming up Chrysler gives Lancia (but more importantly the entire FGA) access to ready made 4x4 technology!

Lancia making a return to the US might be some way off though, i can't see it happening personally

Lancia-Chrysler update

It appears that it's highly likely that versions of Ypsilon and Delta will be sold in the US as Chryslers and that the replacement for the 200C Sebring will be developed as a Lancia for Europe. In Europe Lancia and Chrysler will share supply chain, distribution and retail operations.

Fiat is cancelling all vehicle assembly contracts for Chrysler with Magna in Austria, the winners of the battle for Opel-Vauxhall.

Fiat have taken over Bertone's Grugliasco plant near Torino, which will become the new home of Lancia and Chrysler's European niche models including the 2011 replacement for the 300C, which will simultaneously be developed as a flagship Lancia saloon.

Sounds like Fiat are creating a viable standalone business that can be sold off in future years.

Does this mean that we'll see Lancias on sale in the UK - I hope so, with an existing Chrysler/Dodge/Jeep dealer network and no need to implement Fiat UK's original plan of selling Lancia through select Alfa Romeo outlets. This makes for an interesting mix of brands at some existing Chrysler franchises - our local one (Drayton Group) could see Chrysler, Dodge, RAM, Jeep, Mercedes-Benz, smart and Lancia all on the same site. I imagine that there'll be some 'rationalisation'.

I think Phedra replacement is too far down the development process to be scrapped for a Chrysler-based replacement. Also the Minivan division is being split from Chrysler into the new RAM brand.

Lancia-Chrysler update - Lee, just seen your post - your "standalone" - is this this the high performance version of  Nuova Delta or C300???    !!!

as far as I'm concerned there is no lancia any more if this happens. Everything Lancia ever represented would have no meaning any more for me . I cannot imagine a more depressing end to the story.......US cars are the opposite of everything that made Lancia what it is, style , technical excellence and emotion... .

Yes, I can't see the "standalone" being anywhere as good as the Fanalone.

Jim

Posted today on Italiaspeed, Chrysler is to show 2 Ferrari's on their stand at the Detroit show, as well as a New Delta, but fiotted with a Chrysler corporate nose!!!

Regards

Simon Davis

Guess there won't be a saab version though this time .....

It's rumoured on a few US forums that the US Delta being shown at Detroit later this month is going to be called Chrysler Nassau, a name used on a recent Chrysler concept.

There's a rough pic of the Delta with the Chrysler nose on this site : http://www.burlappcars.com/ - scroll down for the story.

And there have been a few photoshop creations popping up on the net, here's one site http://www.worldautosguide.com/2009/11/2012-lancia-thesis-envisioned-as.html - Lancia Thesis based on 200C and new Phedra based on the Town & Country. I'm going to put my head above the parapet and admit that I quite like the look of the "Thesis", although I think the Thesis name should be reserved for any model based on the bigger 300C platform.

Happy New Year all!

Australian point of view on the Lancia-Chrysler merger:

"By using the Chrysler name you will only attract Biffs who want crude tough cars when they drive to pick up Shazza from work at the first and last hotel."

"Despite there currently being no right-hand drive Lancia models, Mr Marchionne is reportedly interested in expanding into the right-hand drive UK market and combining the two brands throughout the world."

More here: http://www.caradvice.com.au/53955/lancia-back-in-down-under-says-ceo-chrysler-australia-tight-lipped/

Some well informed comments on this webpage - the Europeans sticking up for the marque - anyone we know, particularly with a knowledge of Beta ;-)

Scroll down for comments:

http://carscoop.blogspot.com/2010/01/shhhh-chrysler-badged-lancia-delta.html

The 'American' Delta will sell well in the States, it meets all the criterea re 2015 emissions but at the same time offers enough room for the average family, perhaps serving as an attractive second car. Performance is above average while the European, slightly off the wall design, makes a good talking point. Maybe Fiat will even provide a performance 'kit' that will include Lancia grille and badging. There is of course a major problem, dealer support.

i've read some of the reactions to the Chrysler Delta, mainly american reactions, & they have been 99% positive, which to be honest amazes me!! I was rather cynical about the whole badge engineering thing but maybe Chrysler should give it a go. Lancia will never be sold again in the States, Marchoinne has made that very clear, so if the car can help Chrysler, then it helps FGA!

Just received from Peter Makeham an Australiam member.

Exclusive: Lancias for Oz as Chryslers


Delta force: Chrysler unveiled a rebadged version of the Lancia Delta at the Detroit motor show.

Fiat boss confirms that rebadged Lancias will sell as Chryslers in Australia

19 January 2010

By JAMES STANFORD

LANCIA cars are set to return to Australia as Chryslers.

Fiat and Chrysler CEO Sergio Marchionne has confirmed to GoAuto that a global plan to introduce Fiat group products branded as Chryslers in markets where Lancia is not selling cars would extend to the Asia Pacific and Australia.

Asked if we would see Lancia cars as Chryslers in Australia, Mr Marchionne said: “As Chryslers? Yes, you will. Fear not, you will. To the extent that Lancia is not active, not present in any given jurisdiction, Chrysler will be with a combined offering of Lancia and Chrysler.”

Lancia is a premium division which offers re-mixed Fiat models with adventurous styling and luxury features.

Models such as the Lancia Beta and Flavia were sold in Australia until the early 1990s before fading out of the market.

No Lancias are currently produced in right-hand drive, but Fiat is reportedly keen to get into markets such as the United Kingdom, which would help justify doing the engineering work for Australia.

Mr Marchionne has signalled his intention to merge Lancia and Chrysler model lines around the world.

In markets where Lancia is already present, key Chrysler models will be rebadged as Lancias. For every other market, the small premium Lancias will be rebadged and used to fill out the Chrysler range.

“The benefit of this alliance is that both Lancia and Chrysler will become full liners,” Mr Marchionne said.

“In the case of Chrysler they had nothing below the Sebring and in the case of the Lancia they had nothing above the Delta, so it is a good marriage.”

Asked if this was a cheaper option than introducing Lancia as a stand-alone brand, Mr Marchionne said such a move would have been impossible.

“I don’t have enough money or resources to get that done, to be honest,” he said.

From top: Lancia Ypsilon, Lancia Phedra, Fiat-Chrylser CEO Sergio Marchionne.

Chrysler did not hold a formal media presentation at the Detroit motor show, but did present a Lancia Delta wearing a fresh grille with a Chrysler badge.

The Chrysler stand was also shared with other Fiat brands, including Maserati and Ferrari.

No information was available about the vehicle and the staff at the stand said they had not been given any details about it, not even a name.

The Delta was there to demonstrate that Fiat would move quickly to leverage Lancia products.

“The rebadge that you saw downstairs, (or) which people called a rebadge, is fundamentally an indication of which way the future will develop,” Mr Marchionne told GoAuto.

The Delta is a small five-door hatchback based on the same platform as the Fiat Bravo (sold here as the Ritmo) and, like all Lancias, is marketed as a premium product.

Available engines include two versions of a 1.4-litre turbocharged four-cylinder petrol engine and three common-rail diesels including 1.6-litre, 1.9-litre and 2.0-litre displacements.

Another likely addition to the Chrysler range in Australia is the Ypsilon three-door hatch, based on the Fiat 500 platform – a size smaller than the Delta. It is available with two versions of the 1.3-litre common-rail diesel as well as two petrol units, a 1.2-litre and 1.4-litre.

Lancia also sells the Musa mini people-mover and the Phedra full-size people-mover.

Ateco Automotive currently holds the rights to distribute Lancia in Australia, but this would not cover Lancia products built and sold as Chryslers.

Ateco, which Mr Marchionne describes as a “great friend of the house”, distributes Fiat group brands, including Alfa Romeo, Maserati, Fiat and Ferrari.

Chrysler Group Australia, which is about to move in with Fiat-owned truck brand Iveco in Dandenong, Victoria, handles Chrysler, Dodge and Jeep brands.

Asked if there were any plans to alter the distribution of Fiat and Chrysler vehicles in Australia, Mr Marchionne indicated a more streamlined approach would be beneficial, but was not decided what form it could take.

“We need to converge the way in which we are distributing cars in Australia, simply because of the fact that the car side needs to somehow be optimised,” he said.

“I don’t have an answer to that question yet. I know that Chrysler can continue to function and distribute as it does now.”

Mr Marchionne’s strategy for the restructured Chrysler includes not only products but also technology sharing with the Fiat group.

Chrysler announced earlier this month that it would revamp its powertrain line-up with a range of four-cylinder engines from Fiat.

It said it would introduce the 1.4-litre Fire four-cylinder with MultiAir variable valve actuation, producing 75kW in naturally aspirated form and 128kW as a turbo. The first US application of the engine would be in the Fiat 500, which arrives there late this year.

A 2.4-litre 142kW four-cylinder Fiat engine with MultiAir is also on the Chrysler menu for its medium-sized vehicles, along with a turbocharged version.

Chrysler will introduce the new Pentastar V6 it has already developed to replace six Chrysler engines. This engine will also be adopted by the Fiat group and is likely to replace the Alfa GT, Brera and Spider’s 3.2-litre V6, which until recently was produced by Holden in Port Melbourne.

Mr Marchionne said using the 209kW 3.6-litre Pentastar V6 made sense.

“This engine is replacing a very confused array of V6 engines that this group has had,” he said.

“We need to clean up that confusion because industrially it makes no sense and they were not current, technically.”

Perhaps they will do the same in UK!!!

Don

What a shame it would be for Fiat to market Lancias in the UK as Chryslers just as the Lancia name is becoming credible again, while Chrysler cars are regarded as rubbish here!

What Don neglected to mention is that Peter is arranging a mass jump off from the West Gate Bridge for those in Melbourne.  That looks about the right response to me.

Will it be possible (and legal) to re-badge a Chrysler as a Lancia should right hand drive models become available in the UK?

Robin

Hi robin,
I would have thought as long as you don't try to register it as a Lancia you would be able to change what you like,

Brian
8227 8)

It would be sheer lunacy to brand them as Chryslers in the UK.  I know Lancia is a damaged brand in the UK, but Chrysler is even lower in the public's estimation, I imagine.  It has no history to draw on that will resonate with customers, and all the Chryslers that have been sold here in recent years have been poor cars, marketed at the budget end of their markets, with poor sales and residuals.  Marchionne needs to think very carefully about which brand he chooses in each country, and avoid a one size fits all approach to this.

As long as they're being sold somewhere in RHD then that mean sales here are more likely.
I like the idea of swapping the badges over though :)

As RHD production of the Delta seems more and more nailed on shouldn't LMC contact Fiat and point out what we're all thinking? The UK would after all be the main RHD market (not sure where FAG Chrysler stand re Japan/India). The LMC clearly still commands some respect at Fiat (e.g. provision of speakers at the AGM). Given that Lancia's re-launch in the UK was scuppered at the 11th hour it might not take much to convince them?

I can't say I'm a fan of the DIY re-badging scheme. Perhaps we can avoid it?

Neil

You mean me don't you... :o  "Go on Chris, go and ask for more porridge."  They'll kick me out of the workhouse you know...

i reckon the whole Lancia being re-badged as Chryslers thing means the return of the Lancia badge to Uk & Ireland is off. Holy cow i can't believe we're been handed a crummy American badge instead of a sexy Italian one!
Not sure if FGA will take much notice of LMC, but hey if anyone thingks it'll help, i'll lend a hand in any way i could

Sounds like a volunteer to me Chris and they can't throw you out of the workhouse, after all there is no house in the UK at the mo!

(At the risk of straying from the thread how's the VW? I hired a 1.4 Golf in December. Unbeatable build quality but that 1.4 could only just match the Beta - complete with leaky 30 year old carb - for MPG.)

Neil

Neil - On the strayed off subject, I do like my Scirocco, though the front seats are no match for our 147, and I'm still tempted to go Italian again next time (I shall be having a good look at the new Giulietta, and hopinh that I might even have a Delta to choose...).  The 158 bhp engine in the veedub means its plenty quick, with bags of torque from the supercharger and turbo, and its a great handling car, and a real four seater with a decent boot.  And it was very good in the recent snow.  Economy wise I can get near to 40 mpg on a long motorway run, sometimes past 40 if the average speed drops to around 60 - but I tend to average about 34-35mpg in mixed motoring.  Unfortunately I spend a lot of time in heavy traffic commuting, so on my run to and from work I can see 36 to the gallon, or barely over 20.

now lads, back on topic, taken from AutoBild, its a bit of a dodgy translation....

In collaboration with Chrysler Lancia gets another chance - perhaps the last ?


Chrysler marries Fiat, the brands Chrysler, Dodge and Jeep encounter Fiat, Alfa and Lancia. The CEO Sergio Marchionne will explain in mid-April how this will work.
We reveal just yet what plans he has for Lancia

In 2011 comes the new Ypsilon (and will be called then Appia like the classis Lancia-model). Based on Fiat Panda.

The Delta undergoes its first modernization. And in addition there will be a Thesis-successor, which will also bear a historical name : Aurelia. It will will use the platform of the Chrysler 300C, thus has rear wheel drive.

In 2012 there will be a new Musa (will be then called Flavia) and a new mid-size/range car called Aprillia. It will share the technology with the new Chrysler Sebring. And from the Chrysler Voyager, the groups strategists will "knit"quickly a new Phedra. We have to wait till 2012 for the Flamina sportcoupé - also with rear wheel drive.
And in 2013 the new Delta will come (based on Fiat technology) and will accompanied by a Chrysler version [read: Delta with Chrysler badge]

The Italo-western remains exciting. In order to prevent that Lancia and Chrysler compete in the core markets, the 300C, Sebring amd Voyager will probably disappear from Europe. In return, Chrysler shall offer new Lancia-minis and -compacts in the US.


The hottest question : How will the european Lancia-customers will react, that their favourite brand can only survive with the aid of US-technology ? Only when all Group brands have coordinated their model cycles each other, Lancia can be (more) distinctive in appearance again.


source: Autobild

so, are we now to take it that Lancia WON'T be pulled from all markets & only left in Italy?? Jes*s can we have some clarity from FGA on Lancia, this is driving me crazy!!!

No mention of a new Fulvia :'(

They better hurry up and make up their minds if there going to come back to the UK, otherwise I'll be too b----y old to drive by time they get here, assuming I haven't fallen off the perch first :)

Brian
8227 8)

 well i've taken the bull by the horns (so to speak!) & e-mailed Fiat Italia to query them on what their intensions are with the UK & Irish markets, i got a quick e-mail back thanking me for my mail & saying someone will contact me!