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Fiat Wants To Share Alfa Romeo Production In U.S.

As part of a three-pronged assault on the U.S. market, Fiat is talking to Detroit's carmakers about sharing production of Alfa Romeos. It is also preparing to return its Iveco trucks division to the U.S. market, and to offer the pint-sized relaunched Fiat 500.

Fresh from a turnaround from near-bankruptcy, the Italian industrial group plans to start North American production of Alfa cars by 2011 or 2012. CEO Sergio Marchionne says the weakness of the dollar against the euro compels European companies to manufacture here. But he expects to distribute and sell Alfas in the U.S. starting next year, absorbing losses until production starts with a partner. Chrysler, Ford and GM had no comment.

Fiat withdrew Alfa from the US in 1995, a year in which its sales in the country were just 400 cars. In 2000, Fiat entered a strategic alliance with GM, which acquired 20% of the company. The alliance ended acrimoniously.

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Read the whole story at The Financial Times »

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