Chrysler expects to have its first vehicle based on a Fiat on sale in North America within two years according to President and Vice Chairman Jim Press, with initial products being based on the Grande Punto [Small] and Panda [Mini] platforms.

Chrysler expects to have its first vehicle based on a Fiat on sale in North America within two years according to President and Vice Chairman Jim Press, with initial products being based on the Grande Punto [Small] and Panda [Mini] platforms.

Press, talking to reporters at an autodealer conference in New Orleans, didn't say whether the cars would be badged by Fiat or Chrysler, or at which factory they would be built at, saying that these details were being worked out now. "All options are on the table right now," he said, adding that Chrysler's dealers have been very receptive to idea of smaller, more efficient new models.

Steve Landry, Executive Vice President – North American Sales, Marketing, Mopar Parts and Service, says the 500, Panda and Grande Punto will be the first Fiat models under consideration to be built in the US. Engineering changes will have to be made to allow them to comply to US emissions regulations and Chrysler will consider fitting more powerful engines to target North American consumers' preferences he said. Landry added that the new cars will most probably use automatic transmissions rather than the manual units that European favour. Chrysler has requested US5-6 billion from the US government's US$25 billion corporate average fuel economy (CAFE) programme fund to re-tool its factories.

Meanwhile Press sees Chrysler becoming much more viable within months thanks to its on-going restructuring, improved models, and increased vehicle sales due to wider credit availability and a new incentive scheme. The new incentives, that come into force tomorrow, see the company's Employee Plus Plus programme extended to all American customers. New vehicle customers will receive employee pricing on all 2008 and 2009 Chrysler, Jeep, and Dodge vehicles. Customers also receive discounts of up to US$3,500 on 2009 model year vehicles and US$6,000 on 2008 model year vehicles with zero percent financing available for up to 48 months, while a US$1,000 consumer bonus cash is to be available on most models when financed at Chrysler Financial or a local credit union. "Chrysler is offering America the same pricing our employees receive through the new 'Employee Pricing Plus Plus' program with great savings off the Manufacturers Suggested Retail Price, plus cash discounts of up to $3,500 on 2009 models, plus zero percent financing through Chrysler Financial," said Landry.