UPDATE 1-Fiat to create Ram brand, rush new Chrysler models

* Fiat to create Ram truck brand in Chrysler plan-sources

* Chrysler plan to be presented to US officials this week

* Sebring, Avenger sedans to be revamped-sources

MILAN/DETROIT, Sept 30 (Reuters) - Fiat SpA (FIA.MI) will rush the first all-new Chrysler model to the U.S. market by the end of 2011 and create a new Ram brand for its truck line under a revival plan for Chrysler that will be shown to the U.S. government this week, people involved in the discussions said.

Italy's Fiat, which assumed management control of Chrysler under a reorganization funded by the Obama administration, is scheduled to brief officials with the White House autos task force on plans to revamp Chrysler's vehicle line-up.

Under the plan, Fiat will create a new Ram brand for Chrysler pickup trucks, separating that vehicle line from its affiliation with the Dodge brand, two people with knowledge of the matter said.

In addition, Fiat will bring its first all-new Chrysler product out by the end of 2011, compressing the normal vehicle development plan as it works to unify product platforms and parts sourcing at the two automakers, the sources said.

More models will roll out in 2012, one of the sources said.

Chrysler and Fiat had no comment.

The plan to develop new Chrysler products is seen by many analysts, suppliers and other automotive executives as aimed at the key uncertainty facing the U.S. automaker after it emerged from bankruptcy with $10 billion in U.S. government financing.

Fiat's plan for Chrysler will also focus on investment in improving vehicle interiors, an area where the automaker has come under sharp criticism for trying to cut costs too aggressively.

Fiat will also revamp the mid-sized Chrysler Sebring and Dodge Avenger sedans, reversing an earlier plan that would have scrapped those models at the end of 2010 when a Detroit-area plant that makes the vehicles is scheduled to close. (Reporting by Kevin Krolicki; Editing by Tim Dobbyn)