Thursday, July 31, 2008

Chrysler in tie-up talks with Tata, Fiat

DETROIT (Reuters) -- Chrysler LLC is in talks with a range of overseas partners, including India's Tata Motors Ltd. and Italy's Fiat, as it seeks to raise cash and open doors to faster-growing markets outside the United States, according to people briefed on the talks.

Chrysler, the No. 3 U.S. automaker, controlled by private-equity firm Cerberus Capital Management, has been in discussions with Tata about arrangements to sell its Jeep Wrangler SUV in India and possibly other Asian markets.

In addition, Chrysler has been talking to Fiat about leasing production capacity from Chrysler in North America and cooperating in retail distribution in the U.S. market, the people familiar with the talks said.

Representatives from Chrysler and Tata had no immediate comment. Cerberus and Fiat representatives could not be immediately reached.

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