Chrysler to Name 200 Fiat Dealerships

Chrysler Group LLC is starting to name Fiat dealers for the U.S.

The automaker said Wednesday that it wants Fiat dealers in 119 U.S. markets — mostly in areas that have a high number of small-car registrations — and will name more dealers by year’s end.

Chrysler, which is now controlled by Italy’s Fiat, previously said it hoped to have 165 Fiat stores in the U.S. by early 2011, with the ultimate goal of having 200 locations.

The company wants the Fiat 500 minicar to become a strong contender in the U.S. small-car market, where the Detroit automaker has struggled for years.

Some Chrysler, Dodge and Jeep dealers chosen will build new facilities while others will convert buildings into dealerships. Chrysler said it has also received Fiat proposals from dealers outside the company and is now reviewing their bids.

Chrysler said dealers will be ready to take orders for the Fiat 500. The company has said dealers would start selling the minicar in December, and is looking to sell 50,000 of the 500s in the first year. It will eventually be sold as a convertible and electric car, and larger vehicles from Italy’s Lancia brand may come later.

Last month Chrysler said it would use Ally Financial Inc. as its preferred lender once it starts selling the Fiats. Ally Financial, formerly called GMAC, is already the main lender for Chrysler dealers and customers.

AUBURN HILLS, Mich. (AP)