Chrysler and Dodge will disappear from Europe by 2011, according to company officials.
Only SUV brand Jeep will retain a presence in Europe under the measures.
As part of a five-year plan unveiled by Fiat and Chrysler group chief executive Sergio Marchionne, Chrysler and Dodge models will be rebadged as Fiats and Lancias across Europe.
Marchionne plans to grow Chrysler's global sales from 1.3m vehicles in 2009 to 2.8m by 2014.
Fiat and Chrysler joined a 'strategic alliance' in June this year, which helped prevent the US car maker from going bust.