Abarth Variant Will Roll Out Beside Fiat 500
Eric Mayne Ward's AutoWorld, Jan 1, 2010 12:00 PM

An Abarth derivative of the Fiat 500 will arrive in Chrysler Group LLC showrooms sooner rather than later.

As Chrysler announces plans to produce Fiat Auto SpA's 1.4L Fire I-4 for the 500, CEO Sergio Marchionne confirms a 170-hp turbocharged version of the engine will launch simultaneously, paving the way for the high-performance Abarth.

The 500 is scheduled to make its North American debut in fourth-quarter 2010 — just 18 months from the time Fiat acquired its 20% stake in Chrysler. The B-segment car will be assembled at Chrysler's plant in Toluca, Mexico.

Output will be divided between North America and Latin America, Marchionne tells journalists. Total annual volume will exceed 100,000 vehicles.

Marchionne says the manufacturing strategy reflects how the Chrysler-Fiat alliance will operate. Once production begins at Chrysler's Global Engine Mfg. Alliance in Dundee, MI, the advanced-technology I-4 will find its way into the pentastar company's portfolio.

Meanwhile, Chrysler saves development costs and pays only the $179 million price tag on new tooling.

In return for such access to its technology, Fiat received its ownership stake in Chrysler following Chrysler's emergence from bankruptcy in June.