Chrysler-Lancia Merger To Form ‘Full Line-Up’ By Year's End

Ever since the alliance with Fiat, Chrysler's survival has been certain, though the same can not be said for its prospects. Speculation are abound with regards to whether Fiat models will be re-badged as Chryslers in the U.S., and vice-versa for the European markets. Not quite, according to Fiat/Chrysler CEO Sergio Marchionne, who confirmed that Chrysler and Lancia, Fiat's subsidiary company, are likely to merge into one by year's end.

“In Europe, Lancia is an undersized, underdeveloped brand, with nothing bigger than the Delta. Chrysler, which has a true global reach, has nothing smaller. Put them together and you have a full line-up”, Marchionne told Autocar, describing how the two companies have model ranges that complement each other perfectly.

There were of course clues even before Marchionne's comments. For starters, Lancia CEO Olivier Francois was appointed to head Chrysler last year. And, more recently at the 2010 Detroit Auto Show, the Lancia Delta was re-badged as a Chrysler.

Lancia may be a brand foreign to most of us outside Europe. Even in its stronghold markets, however, the company's success has been limited. But if Top Gear is to be believed, Lancia has produced the most number of great cars, seven to be exact. So the combination of Italian pedigree and American might could yield tremendous results... Time will tell.