Marchionne Could Cut Prices, Kill Weak Chryslers

Chrysler's new CEO Sergio Marchionne could made some major changes in the company's current product range and we're not talking about the over-debated models to be imported from Europe. The Italian might cut prices and even discontinue some unsuccessful Chrysler models, a couple of analysts were quoted as saying by Reuters, until he manages to completely revamp the car lineup in 2011.

"Marchionne might have to make some very tough decisions about which models to kill," Adam Jonas, auto analyst at Morgan Stanley commented on the possibility to see Marchionne discontinuing some models in Chrysler's range. "He should talk to his surviving dealers."

Wondering which would be the models to be phased out? Reuters said Chrysler Sebring, Jeep Compass and Patriot are the first to see their end in case Chrysler's new CEO indeed decides to bring changes in the current range.

As part of the strategic alliance the two manufacturers have formed, the Italians will bring several models in the United States but the only one to be sold under the Fiat badge will be the 500. It will be manufactured in Toluca, Mexico and will go on sale in July 2011. Fiat and Chrysler plan to reach a sales volume of 25,000 units in 2015.

Additionally, the Italian brand will bring the MiTo in North America in July 2011, with production handed over to the Belvidere Assembly Plant. It will be based on the Fiat 199 platform, just like Dodge Hornet. Furthermore, the Alfa Romeo GTX will be released in the US in the same month as MiTo and will be built at the Jefferson North Assembly Plant.