Under one scenario, Chrysler could provide the factories and manpower, with Fiat covering retooling costs. Fiat could then sell the cars through Chrysler's dealer network.
On the flip side, Chrysler might be able to sell its vehicles in Europe through Fiat's dealer infrastructure. Less than 10% of Chrysler's sales volume comes from outside North America, and analysts say it needs more geographic diversity. Finally, Chrysler could use Fiat's small-vehicle platform to produce its own cars in that segment, saving itself the development costs.
Some analysts, however, said Monday that Chrysler's problems were too grave for an alliance with Fiat to make a difference. "The question is whether this is too little, too late," said Todd Turner, president of Car Concepts. "It seems like the horse has left the barn, and the barn is burning down."
(BEGIN TEXT OF INFOBOX)
A tale of two automakers