Marchionne: Fiat Brand Will Retreat from Mass Market

Fiat won't try to defend its historic role as a mass-market brand in Europe, according to Fiat Chrysler Automobiles NV CEO Sergio Marchionne.

Instead, he tells reporters at the Geneva auto show, the brand will focus mainly on small cars. He says the economics "are not there" to develop and launch full range of mainstream vehicles in a bid to regain market share in Europe.

Fiat will "lose its appeal as a general brand" as it acquires a smaller but clearer position within the expanded FCA portfolio, according to Marchionne.

He says FCA will "reconfigure" its market position over the next 10 years. The change will be driven by two factors: the worldwide expansion of FCA's Jeep SUV brand and the positioning of Alfa Romeo as a global high-end brand.