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Chrysler was one of the struggling Detroit Three and at the current time, despite a Fiat connection, they are still slightly on the same plan.

2012 Lancia Ypsilon
2012 Lancia Ypsilon

As part of their effort to capture the market, a new compact/hatchback cropped up in the discussion and there was even speak of a possible Fiat rebadge.

As it happens, those plans can be labeled as water under the bridge because Chrysler recently came forward with an announcement that nullifies all hope of such a vehicle ever made by them.

Not only are they not going to make a compact hatchback for the U.S. market, they aren’t even going to rebadge one from Europe either.

2012 Lancia Ypsilon
2012 Lancia Ypsilon

It is a bit of a sad moment, but actually, I suppose the world will live on and Chrysler will probably do better in the future while going at a slightly slower pace.

Olivier Francois, head of Chrysler and Lancia was part of the announcement, mostly because the Lancia Ypsilon could have been that rebadged car.

2012 Lancia Ypsilon
2012 Lancia Ypsilon

At the end of the day, Chrysler may not really be capable of competing in that tight market like the one where heavyweights such as the Ford Focus, Chevrolet Cruze and Honda Civic exist.