Fiat will start to take over sales and service operations for the Chrysler, Jeep and Dodge brands in Europe next month as the two automotive groups step up the integration of their distribution activities.

Fiat will handle the Chrysler Group operations in 11 European countries in a process that will take nearly two years to complete. The Italian carmaker will also gradually replace Chrysler’s former partner, Daimler, in performing support services such as vehicle logistics and parts distribution. Fiat has already replaced Daimler in providing financial services for Chrysler in Europe.

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Fiat will take over national sales companies in companies in Germany, Italy, the UK, France, Spain, Austria, Belgium, Netherlands, Poland, Sweden and Switzerland.

A spokesman was quoted in local media saying that around 400 Chrysler European employees will move over time to Fiat while distribution contracts with Chrysler importers in other European countries will also progressively shift.

The media report noted that Fiat was expected to announce on 21 April (a date at which it will announce its next five-year plan) its intention to integrate Chrysler’s European dealers into its own distribution network.

According to European carmakers’ association ACEA, Chrysler Group sold 54,334 vehicles in Europe last year, down 41.6% on 2008 while European sales of Fiat group vehicles increased 6.3% to 1.25m in 2009.

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Fiat took a controlling 20% stake in Chrysler Group last June when the US automaker emerged from bankruptcy.