An initial agreement to acquire a 35 per cent stake in troubled manufacturer Chrysler has opened the door for Italian car manufacturer Fiat to make a comeback in the USA. However, having disappeared from the market more than two decades ago can it really make a successful comeback?
The link between the companies is expected to give Fiat the chance to use Chrysler’s technology and vehicle platforms, while Chrysler’s plants and distributors will also build and sell Fiat vehicles as well as their own small cars based on their underpinnings.
Much of Fiat’s hopes rely on the success of its brand of cheap fuel efficient green cars. The two-door Fiat 500 is seen as the key to its revival as it attempts to provide Americans with a viable small, efficient car.
The Fiat Cinquecento already has a strong reputation in America having built up almost iconic status in its earlier incarnations.
Fiat has taken a chance on the back of successful appearances in the US market by the likes of BMW’s MINI and Daimler’s Smart car. Though the market remains niche, Fiat is hoping that it will be able to gain a foothold particularly with incoming President Barack Obama highlighting the urgency to get serious about the environment. Should the Government introduce the tax incentives for green cars in the USA that already exist in Europe, Fiat could be well positioned as customers look to turn away from the gas guzzlers of old.
The alliance with Chrysler remains subject to financial review and approvals including from the US Treasury Department. There has been no official date set for a return by Fiat which has been absent from the market since 1983.
