Fiat has announced that they will kill off the Chrysler badge in Europe, instead rebadging Chryslers as Lancias.

As a result of this decision, the contracts of 1,150 Chrysler and Lancia will be canceled, effective May 31st 2011. The plan is to replace this network with an integrated network of 800 dealerships, possibly by renewing the contracts of several current ones.

Many current dealers will need to upgrade showroom space, with the Lancia line-up set to go from four cars to eight.

This decision will not affect the United Kingdom and Ireland, where Lancias haven’t been sold for a while now. The Chrysler name will live on there.

Source: Automotive News – sub. req.