Automotive parts maker Magna International said on Monday that it is in talks with DaimlerChrysler regarding the possible sale to Magna of a controlling stake in DaimlerChrysler's New Venture Gear, Dow Jones Newswires reported.

New Venture - with operations in Syracuse, New York, and Roitzsch, Germany - makes drivetrain systems and posted sales of about $US1.4 billion in 2002, the report said.

According to Dow Jones, Magna said in a press release that the companies are discussing the formation of a joint venture to operate the business.