When Lancia launched the new Ypsilon at the Geneva Motor Show early last month, it joined its sister-companies’ Fiat 500 and Alfa Romeo MiTo in the Italian auto group’s premium hatchback line-up. But while the model is being sold as a Chrysler in the British Isles, plans to bring it over to North America have reportedly been canceled. Apparently the planned launch of the Chrysler Ypsilon in the States was feared to edge in on the recently launched American-market Fiat 500 too closely and potentially cannibalize sales for the retro hatch.

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The report goes on to indicate that similar plans to market the larger Lancia Delta in North America have likewise been shelved. The Delta was brought to 2010 Detroit Auto Show wearing Chrysler’s winged badge, sparking discussions over whether the lackluster Golf-sized hatchback could make a dent in the North American market, but the case for the badge-engineering exercise was apparently a non-starter.

The inverse, however, remains to be seen, as Chrysler models like the 200 sedan and convertible, the 300 sedan and the Town & Country minivan are being marketed in Europe as Lancias.
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