Fiat SpA's plans for Chrysler will scrap the U.S. automaker's long-held plans for its brands outside North America with the exception of Jeep, people with direct knowledge of the plan said.
Fiat Chief Executive Sergio Marchionne is set to brief analysts and reporters on Wednesday on plans that the Italian automaker has been developing for Chrysler after taking management control as part of a restructuring arranged and funded by the Obama administration.
A Chrysler spokeswoman declined to comment on the pending product announcements. "It will be comprehensive," the Chrysler spokeswoman said of the briefing scheduled to include Marchionne and Chrysler Chairman Bob Kidder.
The centerpiece of the five-hour presentation by Fiat and Chrysler executives will focus on plans to bring new fuel-efficient models to the U.S. market using Fiat-developed engine technology, according to the sources, who asked not to be named ahead of the formal announcement.
That will include plans to introduce Fiat's fuel-saving MultiAir engine technology to Chrysler vehicles, the sources said.
Fiat was given a 20-percent stake in Chrysler by the U.S. Treasury's autos task force in exchange for bringing more advanced vehicle technology to the U.S. automaker as part of an effort to allow it to meet tough new U.S. fuel economy standards.
Other elements of the Fiat plans for Chrysler will reflect a recognition that the automaker cannot be made viable with only minor changes to its past strategy for its three brands, Chrysler, Jeep and Dodge, the sources said.
As part of the wholesale shake-up under Fiat, Jeep will remain an international brand because of the strong name recognition it commands, the people said.
Fiat plans to develop the Jeep brand and beef up marketing for its iconic SUVs in emerging markets such as Brazil, one of the sources said.
Chrysler's pickup truck line-up has been rebadged as Ram, leaving its Dodge brand as a niche offering.
One of the elements of this week's product plans will be discussion of bringing an electric car to the Dodge brand, one of those with knowledge of the plans said.
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