BERLIN (Reuters) -- Chrysler LLC is in talks with Italian carmaker Fiat on a possible cooperation agreement for the production of Alfa Romeo cars in Chrysler's U.S. factories, a German newspaper reported.
In a report to appear on Wednesday, Handelsblatt newspaper said the talks between the two companies are advanced.
"Handelsblatt has learned Chrysler could produce the cars for Fiat subsidiary Alfa Romeo," the newspaper wrote in an excerpt on Tuesday. "Industry sources say the talks are moving forward."
In Italy, Fiat declined comment.
The newspaper quotes a Chrysler spokeswoman saying the report is speculation, but adds: "There could be other partnerships with other carmakers."
On Monday Chrysler and Nissan Motor Co. unveiled a production alliance on Monday that gives the U.S. automaker the small car it lacks and allows the Japanese company to stay in the competitive full-size U.S. pickup truck market.
Chrysler and Nissan built on a smaller agreement the companies announced in January, but executives from both companies said the new arrangement was purely a production deal and declined to say whether they plan further financial ties.