Chrysler to drop own models, bring in Fiat cars: Report

WASHINGTON: US automaker Chrysler is to drop some of its own models in favor of vehicles from Italy's Fiat, its strategic partner as it recovers from bankruptcy, the Wall Street Journal reported on Tuesday.

The newspaper, citing people familiar with Chrysler's plans, said the US automaker will announce on November 4 that it will drop several models from its Dodge and Jeep lines, and phase in the Fiat 500 and the Alfa Romeo brands.

The companies are also aiming to bring Fiat's technology to Chrysler's US operations, including for a mid-size sedan slated to be ready by 2012.

The Italian group plans to build a new line for the small Fiat 500 in Mexico to be ready by 2011, the report said, while the first Alfa Romeo models, made in the United States, will be ready by 2012.

Chrysler and Fiat sealed a deal in June to create a new global auto giant in a milestone for the industry after the Italian champion stepped in to salvage the bankrupt US firm.

Fiat will at first hold 20 per cent of Chrysler Group, with its equity stake rising to 35 per cent and eventually to a majority as long as targets set out in the the deal are achieved and US government funds are repaid.