With no other mention made to the brand, the presentation talked of the group’s plans to reorganise its dealer network coherently ‘with Lancia becoming an Italy-driven brand’, according to reports. Meanwhile the Ypsilon is reported to become the brand’s only model.

The changes form part of the new five-year plan announced by chief executive Sergio Marchionne at the Chrysler division’s headquarters in Auburn Hills, near Detroit

The plan provides the roadmap for the group’s product direction and its drive to increase worldwide sales by more than two million annually as it looks to slash its €10bn net debt burden by at least 90%.

Under the plans, Fiat-Chrysler will to launch new vehicles in segments where it is currently not present, in particular compact cars and crossover vehicles.

The company will also enter new global markets, including accelerating Jeep sales in China by opening its first plant there through a joint venture and increasing production in South America – in total Jeep sales are planned to double by 2018. Ferrari and Maserati will be used to take on Europe’s luxury brands while Alfa Romeo will be revamped and reintroduced to North America, with eight new models planned.

Meanwhile Chrysler will be positioned as a mainstream brand in North America, with plans to grow its presence again, whilst Dodge will specialise in performance cars such as the Charger.

The announcement came as Fiat posted Q1 figures, reporting that it lost €319m compared to a net profit of €31m for the same period last year, net revenues up 12.3% to €22.1bn. Figures were hit by the €315m one-off costs of the Chrysler acquisition as well as €75m in costs from the devaluation of the Venezuelan Bolívar.

Commenting on the changes, Karl Brauer, analyst at automotive vehicle valuation firm Kelley Blue Book, said: ‘These changes won’t happen overnight, and the long-term success or failure of Marchionne’s plan might take a decade or more to assess, but today marks the beginning of a new direction for Chrysler that should prove fascinating to watch either way.’