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December 3, 2009

Will Chrysler Replace the Lancia Brand Name in Europe?

lancia-logo.gifSo by 2011 Fiat S.p.A may be replacing their Lancia brand name with the Chrysler brand in Europe.

This is a surprise move that may signal the demise of the 103-year-old brand name. It is also further proof of just how serious Fiat is about making Chrysler a global brand name.

Most Americans are unaware of the very popular Lancia name but it has tremendous equity in Europe. However, it may end up that the Lancia name will only be used in a few markets - like in Belgium and Italy, where the brand hails from.

The other option is to sub-brand the Lancia name under Chrysler on top models, but it seems unlikely that Italian buyers will go for that.

Chas Hallet of Autocar.co.uk puts this interesting relationship nicely when he says, "Both are brands with pretensions of grandeur and both have very little impact outside of their home territories."

Lancia-Thesis.gifStill, there is tremendous equity in the Chrysler brand name and a great deal of affection for the Lancia automobiles. This move would give Chrysler an instant presence in Europe.

Interestingly, the one blog has already created photoshopped imaginary cars that migtht grow out of this union.

The final decision comes at the end of 2010, but I think this is ultimately a good move. If Lancia continues to bring out interesting cars, this could really bolster Chrysler's image.

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Posted by William Lozito at December 3, 2009 9:47 AM
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