Chrysler is reportedly in talks with Fiat on a possible cooperation agreement for the production of Alfa Romeo cars in a Chrysler US plant.

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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 said. “Industry sources say the talks are moving forward.”


In Italy, Fiat declined comment, according to Reuters.


The newspaper quotes a Chrysler spokeswoman saying the report is speculation, but adds: “There could be other partnerships with other carmakers.”

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In recent weeks it has been speculated that Fiat has been in talks with a number of manufacturers about US assembly capacity, including BMW.


Fiats were sold in the US until the late 1980s while Alfa Romeo was withdrawn in the early 1990s. By the end, each brand was down to a single model line.