Fiat Car

Fiat is well known for very small cars like the above 500, but up until now that fame has not extended far beyond Europe where cramped cities and narrows roads have made small cars a necessity for many drivers. For a few years there has been a little controversy surrounding the fact that Japan’s kei cars and Europe’s similarly small sub-compacts completely outpace the U.S. vehicles in terms of mileage but are not offered in North America even by the very companies that produce them successfully in other markets.

However, it seems like that is about to change.

That’s because Fiat, the famous European maker of mini autos now owns 35% of Chrysler. How much was Chrysler worth to Fiat, you might ask. Well, it’s hard to say, because no money actually changed hands. What Chrysler gets in exchange for 35% of the company is access to Fiat’s small car platforms.

Chrysler, which is owned privately and has already put in for a government bailout, is grasping at straws. You can expect that they will have to cut down on some of their underperforming brands, but at the heart of the matter is the fact that the company doesn’t have any notable small, fuel efficient cars (they might have some but I say “notable” precisely because they have not marketed for fuel economy enough to make an impression on the market).