Despite a chequered history for the Chrysler and Lancia brands in the UK, Fiat Group chief Sergio Marchionne is confident that they can work well as a team.

The company will be re-introducing the Lancia Delta hatchback and small Ypsilon in the coming months, but badged as Chryslers.

Along with the introduction of US models such as the new Chrysler 300, Jeep Grand Cherokee and Dodge Voyager, Marchionne said the Chrysler brand will now be able to compete in the UK will a full line-up of models for the first time.

But he admitted that the move, along with Fiat's presence in Britain does give him sleepless nights.

"The UK is one of the toughest markets in Europe and very competitive in terms of pricing. No carmakers really make money in Britain because of this.

"But there is potential for us now with a full brand rather just the Chrysler models which were always perceived as American cars."

Lancia has not been present in the UK since the mid-1990s and Chrysler has struggled in recent years. Is the revival plan a gamble?

Marchionne said: "Every time you introduce a new brand anywhere it is a gamble. But Chrysler is already present in the market so the risk is limited."