US: Chrysler close to producing Fiat-derived engine
Sergio Marchionne wants to increase Fiat's share of Chrysler to 35% by the end of 2011.
Chrysler Group is to start producing a Fiat-derived four-cylinder engine next month, according to press reports. The move is part of the process required to see Fiat SpA increase its stake in the US giant.
A report by Bloomberg today quoted Gualberto Ranieri, a Chrysler spokesman, saying: "It's going to be early in November."
Fiat is allowed to increase its stake in Chrysler by 5% increments to reach up to a 35% share of the US manufacturer. However, in order to obtain a green light to achieve this, three targets must be achieved: the introduction of the small engine; sales and revenue targets outside North America and the production of a car in the US that can run at 40 miles per gallon.
The CEO of Fiat and Chrysler, Sergio Marchionne, has indicated that he wants Fiat to reach the 35% threshold by the end of 2011.
Last week, Chrysler Group said it has started to appoint dealers to represent Fiat in the US. The dealers appointed in this first phase will be ready to take orders for the Fiat 500, while additional Fiat dealers will be named by the end of the year.
Chrysler said it would like to have Fiat dealers in 119 markets in the US, mostly in areas chosen for their high concentration of small-car registrations.