WASHINGTON (AFP) — US auto group Chrysler LLC is conducting talks with Japan's Nissan about jointly producing midsize cars in a move which could deepen their existing links, the Wall Street Journal reported Thursday.
The Journal report, which cited people familiar with the matter, said the talks have focused on the possibility that Nissan would produce midsize cars that Chrysler would sell in the United States under its own name.
A spokesman for the US car group told the Journal it had "no new alliances" to announce and declined to comment further.
The two automakers agreed earlier this year to team up on pickup trucks and subcompact cars.
The report said that if a new deal is hatched, it could potentially save Chrysler the billions of dollars it costs to develop a full line of vehicles in-house.
Chrysler, which is controlled by the private equity firm Cerberus Capital Management LP, has an existing deal under which China's Chery Automobile Co. will produce small cars for it.
The US group is trying to beat back a sales decline in its domestic market as American consumers shun gasoline-guzzling trucks and sport utility vehicles (SUVs) in the face of searing gasoline prices and a sluggish economy.
Copyright © 2010 AFP. All rights reserved. More »
