In case you didn't realize Fiat was calling the shots now at Chrysler, Fiat announced late yesterday that Paolo Ferrero, Fiat's vice president of product engineering, will now head up the Chrysler Powertrain division. He effectively replaces Bob Lee, a favourite executive with engineering and MBA degrees, who is credited with the "resurrection" of the Hemi V8.

Chrysler said in statement that Ferrero will be "directly responsible for all powertrain activities for Chrysler Group, with a focus on technology-sharing with the Fiat Powertrain Technologies organization.

"Additionally, he will wage indirect oversight of powertrain manufacturing, testing, quality, and international operations while also ensuring strong integration and alignment with the Chrysler Group vehicle engineering organization and other supporting functions."

Likely, then, Ferrero will near toward the manufacture of Fiat's current range of four-cylinder engines at Chrysler's Dundee engine plant, writes Auto Observer's Bill Visnic, which has plenty of capacity now that Hyundai and Mitsubishi are officially out of the GEMA deal. The introduction of dual-clutch transmission technology is a strong possibility, too. It's unclear, though, what this development might mean for Chrysler's new Pentastar 3.6-liter V6 engine scheduled to launch next year in the 2011 Jeep Grand Cherokee.

Auto Observer: Fiat's Guy to Run Chrysler Powertrain; Hemi Future Cloudy