[madan80]

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.

source: http://www.autonews.com/apps/pbcs.dl...2/953958452/-1

I dont know if i should be happy or cry - happy because Alfa Romeo is going to the US, cry - because its being done by GM

[amit]

Originally Posted by madan80

I dont know if i should be happy or cry - happy because Alfa Romeo is going to the US, cry - because its being done by GM

GM?

But yea, I agree with you. Even I don't know if I should be happy or feel sorry for the Italians.

[finneyp]

Fiat is just using the Chrysler's factories (infrastructure), but design, components etc. will be from Fiat.

[madan80]

oops- sorry bout that.. its Chrysler! not GM!!
Thanks amit!

[amit]

Originally Posted by finneyp

Fiat is just using the Chrysler's factories (infrastructure), but design, components etc. will be from Fiat.

Agreed but how well would a Alfa Romeo made in a Chrysler plant be recieved by North Americans? Problem is Alfa doesn't quite evoke happy memories in the minds of Americans and to top it the brand is making a comeback through Chrysler. Lets also remember that Chrysler quality is also perecieved to be the worst among the Big 3.

[ajmat]

Originally Posted by amit

Agreed but how well would a Alfa Romeo made in a Chrysler plant be recieved by North Americans? .

Well, a lot of people are happy with Hindustan Motors making Mitubishi's

[spawnofsatan]

Saw this in the economic times.

DETROIT: Automaker Chrysler LLC is in talks with Tata Motors Ltd and Italy's Fiat SpA, as it seeks to raise cash and open doors to faster-growing markets outside the United States, people briefed on the talks said on Wednesday.

Chrysler, the third largest US automaker, is controlled by private equity firm Cerberus Capital Management LP. Chrysler has been in discussions with Tata about arrangements to sell its Jeep Wrangler SUV in India and possibly other Asian markets, the sources said.

In addition, Chrysler has been talking to Fiat about leasing Chrysler production capacity in North America and cooperating in retail distribution in the US market, the sources said. That could allow Fiat to push ahead with plans to return to the world's largest auto market, while allowing Chrysler to cut costs at a time when sales are down and it faces mounting pressure to shore up cash.

A Chrysler spokesperson declined to confirm the talks. Representatives from Tata had no immediate comment. Cerberus and Fiat representatives could not be reached immediately. Gerry Meyers, a professor at the University of Michigan business school and chief executive of American Motors when it owned Jeep in the early 1980s, said it was clear that Chrysler needed international partners.

"In my mind, they're clearly under a financial strain. It may even be a liquidity strain. There are a lot of questions floating around about how much longer Chrysler can go on with problems like this," he said. He added that the pressure on Chrysler opened a door for an emerging-market partner.

A Chrysler tie-up with Tata could potentially open a new market for the Wrangler, the best-selling model from the brand widely seen as Chrysler's strongest. Fiat and Tata already 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.

Fiat Chief Executive Sergio Marchionne, credited with steering a turnaround for the automaker behind the Alfa Romeo, Lancia and Fiat brands, has said Fiat could decide by year-end on the terms of its return to the North American market.

ELECTRIC VEHICLE TALKS UNDERWAY

The tie-up between Tata and Chrysler would extend a cooperative framework between the two automakers on 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.

Chrysler is continuing those talks with Tata after reaching of memorandum of understanding for the negotiations, one person familiar with the automaker's plans said. Tata, which controls about 60 percent of India's truck and bus market, has global ambitions and an emerging line-up that runs the gamut from luxury to the sold-out Nano, the world's cheapest car with a price just-above $2,500.

In June, Tata completed a $2.3-billion deal for the British luxury brands Jaguar and Land Rover from Ford Motor Co. 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.

Chrysler currently has a small joint-venture in Cairo that has begun producing an armor-ready variant of the Wrangler called the J8, intended to be use by troops. Chrysler re-designed the off-road-ready Wrangler in 2007, adding a popular four-door version of the SUV that has emerged as the linchpin of its Jeep line-up.

US sales for the Wrangler dropped just 4 percent in the first half, outperforming the SUV segment overall where sales plunged by 15 percent as Americans shifted toward smaller and more fuel-efficient passenger cars. The sudden shift away from light-trucks, including pickups, SUVs and vans, hit all three Detroit-based automakers hard in the first half and has forced them to restructure.

Like its larger rivals General Motors Corp 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.

Fitch Ratings on Tuesday downgraded Chrysler, warning that the automaker could run below the "minimum required levels" of cash to finance operations by the second half of 2009 if industry-wide sales remain flat or worsen.

[aaggoswami]

Except powertrains for the new Safari and people carrier from Tata, I dont see this deal having anything interestnig.
However, Chrysler is in the pact called " Global Engine Manufacturing Alliance ". Here Chrysler, Hyundai and Mitsubishi are in the alliance.

So what this means for Tata is that they will be able to access petrol and diesel motors. This is the most positive point if this deal works out.
Moreover, Safari can be launched in US market under the Chrysler brand and this could be good for both Tata and Chrysler.

[maddy42]

Well yesterday on CNBC at the time the NYSE was open were flashing breaking news as Chrysler in talks with Tata over Jeep. No more info was available

[srishiva]

Hope TATA will not get into too many arrangements. It should partner with someone good in a specific areas where it lacks expertise.

[AirWind]

Very conflicting, why would TATA venture into JEEP when they have a capable Land Rover in their hip pocket?

[Zappo]

Originally Posted by AirWind

Very conflicting, why would TATA venture into JEEP when they have a capable Land Rover in their hip pocket?

Its not necessary that Tatas will bite the bait. And bait it is. Its the Chrysler which is seeking out for partners as they are all in deep trouble out there. Now when someone is in a dire financial crunch obviously they look for that proverbial Mr. Moneybags.

Tatas currently figure as one such cash-rich entity around the world. What with Tetley, Daewoo trucks, Corus, JLR and many such other big ticket deals in the pocket all of a sudden every sod in a poor shape is trying to get the Tatas onboard. Of course Tatas with their high visibility acts (in no small measures with the Nano launch as well) are now a known entity anywhere and everywhere.

Now Tatas may decide to hop in but only if they see some major benefit in the deal. And that IMO will not be selling Wranglers in this country. But if they find that through Chrysler they can access entry and mid-range robust Petrol and Diesel engine technology for their cars they may just agree to distribute Wranglers.

It will be interesting to watch how Tatas respond to this one!

[reddy6980]

Heard it from this site .

so finally a true jeep in india

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[mjothi]

So, finally TATA is going to sell Jeep in India. Do I see fate of another FIAT in the making? No details or even hint on the price. Waiting for those to be published.

[Steeroid]

LR & Jeep - two brands that are most vulnerable as fuel prices increase. Both have heavy, gas-guzzling engines - two bad eggs in one basket?

Not a very bright move, but I hope the chaps who are doing this know what they're doing.