Chrysler Group Chief Executive Officer Sergio Marchionne

Chrysler Group Chief Executive Officer Sergio Marchionne

Nelson Ching/Bloomberg

With Fiat on track to lose 700 million euros in Europe as its market share in the region tumbles, strained relations in Italy could reinforce CEO Sergio Marchionne’s focus in favor of Chrysler and the U.S. as he plots a merger of the two carmakers.