The Fiat-Chrysler alliance has said that the two groups will work hand-in-hand towards the development of all future models, with the Italian branch handling the smaller and compact / medium segments and the American, the medium and larger categories.

We’ll have to wait to see the first (real) results, but for the time being, the group is making use of one brand’s vehicles to supplement the lineup of another brand through the age-old approach of rebadging.

Following the European premieres of the Chrysler 200, 300 and Town & Country with Lancia badges and names, the table has turned around with Chrysler welcoming a Lancia model into its range, the new Ypsilon supermini. But it’s not for U.S. consumption.

As you may remember from previous posts, the Fiat-Chrysler alliance has decided to market all Lancia models under the Chrysler brand in the United Kingdom.

Besides the Chrysler-specific grille and badging inside and out, there are no other changes to the Ypsilon, which is being marketed as a more premium proposal in the Ford Fiesta category.

The 3.8-meter-long five-door model with the hidden rear door handles launches in the UK with a choice of two petrol engines and a single diesel option, all equipped with a Start&Stop system as standard.

The gasoline range includes a 1.2-liter Fire four-cylinder unit producing 69HP and 102Nm of peak torque with CO2 emissions of 115g/km, and Fiat’s award winning (2011 International Engine of the Year) two-cylinder 0.9-liter TwinAir that pushes out 85HP and 145Nm of torque with CO2 emissions of 97g/km.

The most powerful choice is the 1.3-litre MultiJet II turbo-diesel with 95bhp and 200Nm of torque at 1500rpm.

All engines are paired with a 5-speed manual gearbox, while the 0.9-liter TwinAir can be optionally specified with a semi-automatic five-speed transmission.

The Chrysler Ypsilon is on sale now in the UK with OTR prices starting from £10,695 (for full details, click the image above).

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