
According to The Guardian, Chrysler is currently in talks with Fiat and Tata over a possible future cooperation. As we already know, Fiat and Tata have a partnership. Fiat agreed this month to handle the financing in Europe for Tata’s Jaguar and Land Rover brands, while Tata said it was open to Fiat selling its ultra-cheap Nano.
Though no officials from the three companies confirmed, rumors say that Chrysler, the third largest U.S. automaker, has been in discussions with Tata about arrangements to sell its Jeep Wrangler SUV in India and possibly other Asian markets, the sources said. The cooperation between Tata and Chrysler could result in the two automakers launching an electric vehicle. Tata said in January that “exploratory discussions” had begun with Chrysler over sales for a battery-powered version of its Ace mini-truck. By concluding a deal with Tata, Chrysler also could look to sell a version of the Jeep Wrangler to the Indian military, another person familiar with the talks said.
In addition, Chrysler has been talking to Fiat about leasing Chrysler production capacity in North America and cooperating in retail distribution in the U.S. market. That could allow Fiat to return to the world’s largest auto market, while Chrysler could cut costs at a time when sales are down and it faces mounting pressure to shore up cash. Like the other two Detroit giants, GM and Ford, Chrysler has faced scrutiny over its liquidity because of the sharp decline in sales. Chrysler lost $1.6 billion in 2007 and the holding company that includes both the automaker and its financing unit, Chrysler Financial, lost $509 million in the first quarter.
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