Chrysler to Make SUV Under Maserati Brand
By JEFF BENNETT
LOS ANGELES—Chrysler Group LLC, which is trying to turn itself around with the help of its partner Fiat SpA, has plans to cooperate with the Italian company's super-luxury brand Maserati.
In 2013, Chrysler will begin producing a premium sport-utility vehicle to be sold as a Maserati in markets around the world, according to Sergio Marchionne, who serves as chief executive of both Chrysler and Fiat.
The Maserati vehicle will be made from the underpinnings of Chrysler's new Jeep Grand Cherokee and be assembled at its Jefferson North assembly plant in Detroit, Mr. Marchionne said in an interview at the Los Angeles auto show.
"This is just a great architecture," Mr. Marchionne said. "Why wouldn't I put a Maserati on it?"
The plan signals a broadening of the cooperation between Chrysler and Fiat, which has management control of the American auto maker and owns 20% of its stock.
Under Mr. Marchionne's turnaround plan for Chrysler, the company is preparing to launch a series of small cars based on vehicles developed by Fiat. It will also produce Fiat models that will be sold in the U.S., and help return Fiat's Alfa Romeo brand to the U.S. market.
A few Chrysler models are also supposed to be sold outside of North America under Fiat's Lancia brand. The first will be the redesigned Chrysler 200 midsized sedan, Mr. Marchionne said.
Cooperation between Chrysler and Maserati would add a new dimension to the ties between the U.S. auto maker and Fiat at a time when Chrysler is starting preparations for a possible public offering of stock in 2011.
On Friday, the Obama administration's auto czar, Ron Bloom, said it is unclear if the company will be ready for an IPO next year. But he added that "the company is on a good trajectory."
Mr. Bloom also said Mr. Marchionne briefs U.S. Treasury officials once or twice a month and gives notice on major decisions. The U.S. government financed Chrysler's restructuring in bankruptcy court last year, and is a minority shareholder in the auto maker.
Chrysler reported a net loss of $84 million for the third quarter but made money on an operating basis. Mr. Bloom said Chrysler's financial performance has bested expectations and efforts to rejuvenate the company's product line—considered a critical weakness—appear to be going well.
"Our view on Chrysler at the moment is so far so good," Mr. Bloom said in an interview.
The Maserati will be built alongside the Grand Cherokee and Dodge Durango, possibly creating the need to hire workers for a third shift at the Chrysler plant, Mr. Marchionne said.
Maserati, which was acquired by Fiat in 1993, is known for luxury sport sedans and sells such models as the Quattroporte along with the GranTurismo coupe and convertible. Maserari models start at $118,000, well above the Grand Cherokee's starting price of $30,000.
Mr. Marchionne first hinted at using the the Grand Cherokee architecture to produce other vehicles during a conference call earlier this month.
"It would certainly give us a unique opportunity to try and use all the amount of work that's gone on inside Chrysler," he said in a conference call to discuss Chrysler's third-quarter results. The basic architecture of the Grand Cherokee is "capable of supporting the content of a much higher-priced brand as Alfa or Maserati."
The new Grand Cherokee was launched last summer and has been well received by auto critics and dealers. The vehicle was developed in cooperation with Daimler AG, which owned Chrysler until 2007. The same architecture that Chrysler uses for the Grand Cherokee is also used by Daimler for its SUV, the M-Class, made in Alabama.
Write to Jeff Bennett at jeff.bennett@dowjones.com
