Update: Chrysler in further negotiations with Nissan, still talking with Fiat and Tata

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Update: Chrysler in further negotiations with Nissan, still talking with Fiat and Tata

Update: Chrysler in further negotiations with Nissan, still talking with Fiat and Tata

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Update: Yesterday reports emerged claiming Chrysler was in talks with Tata and Fiat over a deal to sell its Jeep Wrangler SUV in India and other parts of Asia. Latest reports indicate that Chrysler is still in talks with Nissan, and is even considering building a new pickup truck for the Japanese carmaker at a plant in North America.

Citing people familiar with the matter, the Wall Street Journal reports that Chrysler is attempting to strengthen its foreign ties, tighten its spending and is reconsidering production plans for its new Phoenix V6 engine. Another option for Chrysler is to allow other carmakers to utilize unused capacity at some of its plants, namely the Dundee plant in Michigan.

In April, Chrysler and Nissan entered a deal under which Nissan would build a small car for Chrysler, and in return Chrysler would build a new full-sized pickup truck for the Japanese carmaker. Nissan confirmed earlier this year that it would end production of its own Titan full-size pickup, increasing the chances that its next pickup could be supplied by Chrysler.

Original: Facing serious trouble in its home U.S. market, Chrysler is looking overseas for its salvation. Hoping to find an outlet for its Jeep Wrangler SUV in India or elsewhere in Asia, Chrysler is talking with a range of companies, including Tata Motors and Fiat.

Exactly how much the deal would be worth or what kind of production Chrysler is considering is unknown, as the information is still trickling in from sources close to the matter.

Other objectives of the discussions include offering some of its excess production capacity to Fiat as the brand stages its U.S. re-launch, reports Automotive News. News of Fiat's tie-up with BMW via its Mini dealerships hit the Internet earlier this month, but more capacity will be necessary for Fiat's full product roll-out.

Chrysler's troubles have been especially public in recent weeks, with its announcement of $515 million in first-quarter losses and the cessation of its leasing business. Nevertheless, the company continues to march forward with its reorganization.
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Comments (3)
  1. Well, if the Indians really want Jeeps, Tata can buy Chrysler and get rid of Dodge and Chrysler brands. Fiat would be a good partner, Chrysler could use their platforms to replace the Sebring and Avenger as well as getting more market access for Jeep, in return, Chrysler can let Fiat use its dealership network in America for when Alfa Romeo returns.

  2. It doesn’t matter with whom Chrysler will negotiate, it’s gonna be one extraordinary car. I'm sure of it. Now let's see who will shake hands.

  3. Wait a minute... Chrysler to build a truck for Nissan? How is that going to improve Chrysler's situation? How many full sized pick ups do they think will sell? It is the worst time in the market to introduce a F-S Pick up. First, they could not call it the Titan, for marketing reasons, that name will be retired. Second, with gas prices only coming down marginally, this truck will have some serious resistance at market entry.
    The Fiat deal sounds very promising for several reasons. Workers stay employed, equipment can continue to be depreciated instead of written off or sold, and this has the promise of accelerating the re-introduction of Fiat to the U.S. Good Luck Chrysler.

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