Chrysler May Merge With Italy's Lancia in 2010

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In an interview with Britain's, Fiat/Chrysler boss Sergio Marchionne indicated that the Chrysler line of cars could "converge" with the Fiat-owned Lancia brand by the end of the year.

Marchionne told the publication that “in Europe, Lancia is an undersized, underdeveloped brand, with nothing bigger than the Delta [compact hatchback]. Chrysler, which has a true global reach, has nothing smaller. Put them together and you have a full line-up.”

Pointing out that there aren't any plans to bring the Lancia brand to the U.S., Marchionne added that there is no structural conflcit preventing such a merger. The Italian automaker is known for its small, but luxurious vehicles.

A Lancia Delta rebadged with a Chrysler grille and logos was unveiled at the 2010 Detroit Auto Show to guage reaction for the concept. Lancia-derived vehicles could form the basis of replacements for soon to be discontinued Chrysler products like the P.T. Cruiser and Sebring midsize sedan.

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Click here for a slideshow from 2010 Detroit Auto Show