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Chrysler in talks to build Fiats in U.S.

01:00 AM EDT on Saturday, August 16, 2008

By Mike Ramsey

Bloomberg News

Chrysler LLC, the third-largest U.S. automaker, has held preliminary talks with Fiat SpA about building vehicles in North America for the Italian carmaker.

The discussions haven’t continued and Fiat has likely talked to other carmakers, said Tom LaSorda, president of Chrysler, in an interview at a conference in Traverse City, Michigan. “There was an inquiry,” LaSorda said. “We are not the only one.”

Building cars for Fiat would expand Chrysler’s list of alliances and help keep plants running as sales for the Auburn Hills, Mich., based automaker dwindle. The move would also allow Fiat to broaden its U.S. presence beyond $115,000 Maserati sports cars and Ferraris costing as much as $300,000.

Executives at Turin-based Fiat have said they are talking to U.S. automakers about using their plants to build Alfa Romeo sports cars. U.S. production would allow Fiat to avoid the rising costs of imports stemming from the dollar’s decline in value against the euro.

Chrysler will begin assembling minivans for Germany’s Volkswagen AG in Windsor, Ontario, next month and is scheduled to build a pickup truck for Japan’s Nissan Motor Co. in 2011.