Euro-American automaker Fiat/Chrysler will sharply pare back but not kill off its long-troubled Lancia brand, company officials clarified, countering recent reports that the marque would soon vanish due to Fiat’s financial problems.
But, in many ways, the “new” Lancia will be a mostly American brand despite its Italian name and heritage.
“Lancia’s lifeline will be Chrysler,” explains analyst Jim Hall, of 2953 Analytics.
TheDetroitBureau.com was one of many media outlets to interpret comments made by Fiat/Chrysler CEO Sergio Marchionne to imply Lancia would be eliminated. The brand has suffered years of declining sales despite the addition of new models and the financial strain was worsening just as Fiat has had to deal with the decline of European automotive sales. The collapse has been especially severe in its home Italian market.