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  The Chrysler-Fiat move is not expected to create any short-term changes in Australia.

The long-overdue Dodge Hornet could finally grow wings when Chrysler emerges from Chapter 11 bankruptcy later this year in the USA.

And what about a Chrysler 200C with a Lancia badge? Or a Jeep wrapped inside a softroader Fiat?

This is just some of the speculation as Chrysler re-organises and re- finances for a new future in a joint venture partnership with Fiat of Italy.

No-one really knows what is going to happen on the product front, but the two brands are aiming for a Renault-Nissan type of global alliance once Chrysler's financial troubles are addressed through the bankruptcy proceedings.

It means cars like the Renault Koleos — a Nissan X-Trail in French clothes with European chassis tweaking — could easily become a reality, as well as Fiat returning in force to American showrooms thanks to its Chrysler connection.

"This partnership transforms Chrysler into a vibrant new company with a wealth of strategic advantages," says the CEO of Chrysler, Bob Nardelli.

In Australia, the Chrysler-Fiat move is not expected to create any short-term changes.

"The term 'bankruptcy' means different things from country to country, and it's important to understand that this Chapter 11 filing does not mean Chrysler is going to disappear. Rather, it is a positive step forward in the on-going improvement of the Chrysler organisation,"

says the head of Chrysler Group Australia, Gerry Jenkins.

He says the move into Chapter 11 will mean a speedy re-structure and a stronger company at the end of the process.

"The path forward for our parent company is now clear. A new company will emerge in just 30-60 days that is lean and well-structured to meet the current and future demands of our customers in Australia and New Zealand.

"I'm very excited about the opportunities provided by the strategic alliance with Fiat and the other changes within our business. I've been with Chrysler for 30 of its 80-year history, and the future has never looked brighter."

Jenkins confirms the strength of Chryler in Australia, although he admits there is no detail yet on linking with Fiat.

"Our customers have to know we're here. We're live and vibrant and we're here," he says.

"International is not affected by the chapter 11. Not only are we profitable in Australia, but we're the strongest right-hand drive market and very well positioned. We've increased our maket share in a very, very challenging market.

"Time will tell exactly how we position ourselves in Australia. I don't know what the future holds in that regard. We'll see how we bring some synergies going forward."