Chrysler appoints US dealers for Fiat franchises

Oct 20, 2010, 18:52 GMT

Detroit - Carmaker Chrysler LLC on Wednesday started awarding Fiat SpA franchises to some of its local dealers, to bring the Italian brand back to the United States.

Dealers who have been granted Fiat franchises will, for now, start with the iconic Fiat 500 subcompact car, the Michigan-based company said, adding the tiny car to their usual lineup of large sedans and pickup trucks.

A distribution network will be in place by the end of the year. Chrysler said it would like to have Fiat dealers in 119 markets in the US.

'We have carefully considered each of these dealer proposals looking for the best locations and the most creative plans,' said Peter Grady, vice president of network development and fleet operations. 'We are thrilled with their level of interest in securing the Fiat franchise and in the innovative proposals they have submitted.'

Dealers from outside the Chrysler dealer network also have shown interest in securing the Fiat franchise and the company said it was looking into their proposals.

Chrysler, which is now controlled by Fiat, had in May announced plans to introduce a retro version of the Italian cult car Fiat 500 to the US market by the end of the year.

Initially the closed version of the Fiat 500 will be sold, to be followed by introduction in 2011 of a cabriolet model, filling a gap in Chrysler's segment of small-car products.

In the wake of Fiat's takeover of Chrysler after the US carmaker's insolvency a year ago, the two companies are working jointly to develop new cars. But the first such models will not be available until late-2011 at the earliest.

The Fiat 500 will be built in Chrysler's Toluca, Mexico plant.

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