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  Fiat might need to move away from its stand-alone dealership network to partner with Maserati to cut costs and also give a more aspirational rub-off to the brand. Photo Gallery

The survival of Fiat in Australia could depend on Maserati.

An unlikely liaison between the two Italian brands is being planned as a way to take Fiat upmarket down under and give the brand the momentum it needs to prevent a retreat from local showrooms. The deal will be set before the end of the year, if it goes ahead, with Fiat boss Neville Crichton desperate to change the fortunes of the Italian brand.

"It makes no sense to continue with the Punto and Ritmo if we lose money on every car we sell," says Crichton, speaking at the Frankfurt Motor Show. "We need to take the brand upmarket. The 500 is working well, particularly the Abarth versions. I think it could be a good match with Maserati."

He believes Fiat might need to move away from its stand-alone dealership network to partner with Maserati to cut costs and also give a more aspirational rub-off to the brand. "I think it would work well with Maserati. We're looking into it at the moment, and I think the two brands would work well together," Crichton says.

His company, Ateco Automotive, is the most broad-based importer in Australia with a portfolio that runs from Alfa, Fiat, Maserati and Ferrari to Citroen and Great Wall of China. But it has been suffering badly because of the global economy downturn and the showroom slide in Australia, although he says the second half of 2009 will be much better.

"We started trading profitably again in July. We've got things back under control, and the strengthening of the dollar has helped," Crichton says. So far this year Fiat has only sold 1338 cars, slightly down on 1341 to the end of August in 2008, despite a broader range of vehicles. But Maserati has seen its sales cut from 162 in 2008 to 84 this year, with Ferrari also trailing 68 to 121 in the year-to-date results for August.

"Things are starting to improve and the interest in the Ferrari F458 has been incredible. The new products from Maserati also look great," says Crichton. Meanwhile, Fiat has already linked its baby 500 with Ferrari. A special edition of the cute little Italian baby car, called the Tributo Ferrari, is being produced by Fiat's high-performance Abarth division and is on the shopping list for sales in Australia.

The car gets the 120kW turbo 1.4-litre engine first seen in the Abarth Esseesse version of the 500, bolted to a five-speed sequential manual gearbox with paddles behind the steering wheel. Fiat says the car can sprint to 100km/h in less than seven seconds with a top speed of 225km/h.

But the real changes are to the way the car looks and sounds, with Ferrari-red bodywork topped by a GT strip over the bonnet and roof, a deep-set spoiler, 17-inch alloy wheels and red-painted brake calipers - and a dual-note exhaust which is quiet at idle but turns wicked once the engine is pushed beyond 3000 revs.