Fiat will buy an OEM variant of the next Mitsubishi L200 for sale in Europe and Latin America

Fiat will buy an OEM variant of the next Mitsubishi L200 for sale in Europe and Latin America

Fiat-Chrysler will source a new midsize pickup for European and Latin American markets from Mitsubishi. The companies said the model will be based on the next generation L200.

The two automakers have signed a non-binding memorandum of understanding. Although they gave no further details, it is understood the pick up will be sold under the Fiat Professional commercial vehicle brand.

Mitsubishi already has an agreement to supply its Attrage sedan [a Mirage hatchback spin-off], which is made in Thailand, to Fiat partner brand Chrysler for sale in Mexico, according to a Reuters report. The L200 is also currently built in Thailand although there is no indication as to where the Fiat pickup will be assembled.

Fiat Chrysler’s new five-year plan unveiled in May includes a pickup for Europe and Latin America debuting in 2016. Fiat’s current range includes the Strada, a front wheel drive-only unibody small pickup built in Brazil.

Fiat makes OEM versions of its small Doblo van line for General Motors' Opel/Vauxhall brands and also for Chrysler's Ram truck unit in North America.

In a further twist, the Mitsubishi plant in Thailand until recently built Nissan's Navara under contract until the latter opened a new plant.

Broadening Fiat Professional’s lineup is seen as crucial to make the company’s European business profitable again. It aims to return to profit by 2016 after several years of losses.