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The agreement involves two new minicars (A-segment) that share the same platform. The first is the aforementioned Fiat 500 and the second, a five-door hatchback based on the Fiat Panda, will likely be badged as a Chrysler or Dodge. This should help both automakers with the 2011 U.S. fuel economy standards and give Chrysler a serious sub-compact offering.

Moving up to the B segment, Chrysler could get the next generation Fiat Grande Punto, Alfa could begin selling the MiTo and the same platform could be used to create a small crossover for Chrysler. There's also talk of Chrysler being afforded access to Fiat's 1.4- and 1.8-liter four-cylinder direct-injection engines. Chrysler could produce both at one of its own factories, likely in turbocharged guise at its Dundee, Michigan plant, but a source indicates that Chrysler is only interested in the 1.4-liter variant.



On the mid-size front, Chrysler – which is in desperate need of both C- and D-segment models to replace the Caliber/Compass and Sebring/Avenger, respectively – could utilize Fiat's new C-Evo architecture to create a new sedan and a more respectable compact car. The C-Evo underpinnings will be used first on the Alfa Romeo 147 replacement, currently codenamed project 940, which takes some stylistic cues from the 8C Competitizione.

And what's Fiat get out of all this? An inexpensive entry into the North American market, manufacturing capacity and a sizeable distribution network. And if you think Chrysler is getting all the goods, Fiat plans to distribute the Dodge Journey and Dakota pickup in South America, and will be able to utilize Chrysler's new Phoenix V6 in its own line of products. Not quite balanced, but hardly a bad deal.