Report: Chrysler cancels U.S. launch of rebadged, 40-mpg Lancia Ypsilon

While the next-generation 2012 Lancia Ypsilon will reportedly be sold with a Chrysler badge in the British Isles, all plans to launch the hatchback, with its estimated 40 miles per gallon rating, over in North America have been canceled, according to Car and Driver. Apparently, the launch of the Chrysler Ypsilon in the States was feared to overlap with Fiat 500 territory and thought to possibly cannibalize sales of the retro hatch.

Specifically, Car and Driver says that the Chrysler Ypsilon is "as good as dead" because it would be both "too close" in price and design to the Fiat 500. Olivier Francois, president and chief executive officer of the Chrysler-Lancia-Fiat brands, apparently told Car and Driver that the pair of vehicles (500 and Ypsilon) are simply too similar to offer both in the U.S.

[Source: Car and Driver]