Fiat SpA is in talks with Chrysler LLC over a possible stake in the struggling US automaker, a source close to the Italian group said on Monday.
Fiat SpA is in talks with Chrysler LLC over a possible stake in the struggling US automaker, a source close to the Italian group said on Monday.
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"Between the two groups, there is talk about Chrysler possibly using Fiat technology in exchange for a stake," a source said, speaking on condition of anonymity.
The source said a deal with Fiat would help Chrysler make vehicles that produce fewer harmful emissions.
"To get financing, US (car makers) have to show that they are really committed to developing over the short term a new family of vehicles that pollute less," the source said. "By itself, Chrysler would not be able to meet this condition."
The talks between Fiat and Chrysler were reported by auto industry publication Automotive News Europe earlier in the day on its website (https://www.autonews.com).
The publication cited unnamed sources as saying Fiat could take a stake of up to 35 per cent in Chrysler and give the US automaker access to platforms, engines and transmissions.
Chrysler, the No 3 US-based automaker behind General Motors Corp and Ford Motor Co received $4 billion of US government loans to avert collapse and Chief Executive Bob Nardelli said last week it was counting on $3 billion more.
It had requested $7 billion of US government aid.
GM, which also received government money, and Chrysler are required to meet cost-cutting targets as a condition of the aid, including reducing labor costs and restructuring debt as well as demonstrating that they have plans to be viable.
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