CARY, N.C. -

Given the deal announced Wednesday for Fiat to gain 100-percent ownership of Chrysler Group, their collective dealers are likely to enjoy a broader and improved lineup of cars to offer consumers. Not only that, this new-and-improved offering may reach dealer lots in a more timely fashion.

Such is the outlook that at least some industry analysts are forecasting for Chrysler and Fiat dealers in light of the purchase agreeement.

Fiat S.p.A. announced that its Fiat North America subsidiary reached a deal to buy the entirety of VEBA Trust’s equity membership interest in Chrysler. Put another way, FNA it buying out the (approximately) 41.5 percent of the automaker it did not already own.

So, what does this mean for dealers who sell cars from these automakers?

“Fiat will increase the integration between Chrysler and Fiat platforms and technology, but ultimately, it should simply mean more models from both brands for Chrysler and Fiat dealers to sell,” said Karl Brauer, senior analyst for Kelley Blue Book.  

“There’s the potential for Fiat to encourage dealers to consolidate existing Fiat stores with Chrysler, Dodge, Jeep and Ram stores,” he continued. “We’ll also see Alfa Romeo and Lancia enter the U.S. market soon, which means more brands for existing dealers, as well as the potential for new dealers to be added to their network.

“Parts supply will also become a more global aspect of the Chrysler brands, but this already is the case for most car brands and shouldn’t impact the dealers’ service or cost.”

Over at Edmunds.com, senior editor Bill Visnic also shared his thoughts on what the agreement means for dealers.

What it may boil down to, at least theoretically, is a stronger lineup of vehicles that gets into the hands of dealers more efficiently.

“With Fiat prepared to take full ownership of Chrysler, both Fiat and Chrysler dealers may be more quickly and directly rewarded for the patience they've needed, while the two companies decided on the best path to integration,” Visnic said.

“In theory, the two companies becoming one should make it easier and more feasible to expand both Fiat and Chrysler model ranges, but also speed the process of getting all-new and re-engineering existing products into showrooms,” he added.

“In addition, manufacturing and purchasing efficiencies from single ownership of the companies' global operations should help new products to be engineered with the most up-to-date features and technology at a potentially lower cost to customers, helping to maximize the competitiveness of Chrysler and Fiat in the showroom.”

Word of the agreement came on New Year’s Day from Fiat, whose chief executive officer Sergio Marchionne is also the chairman and CEO of Chrysler.

“In the life of every major organization and its people, there are defining moments that go down in the history books. For Fiat and Chrysler, the agreement just reached with the VEBA is clearly one of those moments,” Marchionne said in a statement from the Italian automaker.

“I will be forever grateful to the leadership team for the support and unwavering dedication shown to the integration project that today has taken its final shape,” he continued.

“The unified ownership structure will now allow us to fully execute our vision of creating a global automaker that is truly unique in terms of mix of experience, perspective and know-how, a solid and open organization that will ensure all employees a challenging and rewarding environment.”

The deal, Brauer said, also speaks volumes for Marchionne’s legacy. The KBB analyst called it a “culmination of a long-term vision” for Marchionne, who has had his eye on transforming Fiat into a global player.  The extension of that process has been Chrysler’s renaissance over the past four years
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“Fiat's successful purchase of Chrysler is the culmination of a long-term vision by Sergio Marchionne. He’s always wanted to turn Fiat into a global automaker, and he pulled it off with minimal cash outlay, even as Fiat struggled amid a collapsing European car market,” Brauer said.

“Like the most successful automotive CEOs, Marchionne is more than just a car guy, he’s a shrewd financial visionary,” he continued. “This will allow Fiat to focus on the business of building cars while leaving the era of restructuring and ownership struggles behind.”

As for Chrysler, Marchionne’s leadership of the automaker’s “successful rebirth” has turned “a faltering car company into a viable automaker with a four-year record of consecutive growth,” Brauer said.

“This financial turnaround is founded on a solid string of successful product launches, ranging from the updated full-size Ram truck and Durango SUV to the compact Jeep Cherokee crossover. A new Chrysler 200 sedan will debut at the Detroit auto show in a couple weeks, positioning the automaker for further sales and revenue growth into 2014 and beyond,” he continued.

Despite Chrysler’s success over the past four years, however, there is work to be done when it comes to these two companies becoming one.

“Launch delays and post launch problems for models like the Dart and Cherokee illustrate the difficulty in sharing resources across an ocean. The all-new Chrysler 200 will be Fiat's next real test in combining design and engineering talent to create a competitive global platform,” Brauer said.

“The high-volume family sedan category is populated by superb product, leaving little room for error,” he continued. “And until the European car market recovers, Fiat will have to rely on global markets to sustain growth, which made resolving the Chrysler ownership question a critical step in the company’s long-term plan.”
 

Joe Overby can be reached at joverby@autoremarketing.com. Continue the conversation with Auto Remarketing on both LinkedIn and Twitter.