Fiat India is ready to launch a small car powered by 1 liter engine for India by 2012. This new car will be able to compete against the Maruti Alto, and has been customized in design and performance to suit Indian driving conditions. Fiat needs a method to enter these emerging markets in order to diversify itself from European sales, and this may be the one that will change Fiat for the better.
Although Fiat has a relatively small market in the U.S. auto market, it will own a 35% stake in Chrysler by 2012. Therefore, the position of Chrysler is vital to Fiat. Chrysler has entered a strategic alliance with Fiat, in which Fiat allows Chrysler to tap into its small/compact vehicle segments, grow internationally, and lower the cost base for car parts by pooling purchasing volume and sharing technologies.