Chrysler To Sell JEEP To TATA ?

[csv8]

EXCLUSIVE-Chrysler in talks with Tata, Fiat-sources
07.30.08, 6:39 PM ET


By Kevin Krolicki and Poornima Gupta

DETROIT (Reuters) - Chrysler is in talks to lease U.S. production capacity and share retail distribution with Fiat (nyse: FIA - news - people ) SpA , allowing the Italian automaker to return the U.S. market for the first time in 25 years, people briefed on the talks said Wednesday.

Chrysler, the No. 3 U.S. automaker, has also been in discussions with India's Tata Motors Ltd (nyse: TTM - news - people ) about selling its Jeep Wrangler SUV in India and possibly other Asian markets, said the sources, who were not authorized to discuss the negotiations.

A spokesman for Chrysler, which is controlled by private equity firm Cerberus Capital Management LP, declined to confirm the talks.

A Tata representative had no immediate comment. Cerberus and Fiat representatives could not be reached immediately.

Fiat Chief Executive Sergio Marchionne, credited with steering a turnaround behind the Alfa Romeo, Lancia and Fiat brands, has said Fiat is looking for a partner for its return to the North American market.

Fiat is riding the popularity of its Fiat Cinquecento (500) compact car in Europe and Brazil.

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.

One investment banker, who declined to be identified, said it was likely that a product-centered tie-up with Chrysler could lead to a larger deal over time.

"You could definitely see this evolve into something," the banker said. "It would make sense for Tata to buy Jeep if this partnership went through ... and Chrysler could really do with selling a brand and getting some cash."

[V3RSAC3]

TATA's a huge company in India, much like Holden is here, would be a wise move

[XW 393]

I thought Jeep's were already Tata ......... wait, thats kaka sorry.

[Joey_Falcon]

So let me get this straight, Chrysler is going to sell Jeep to TATA, and Fait in going to merge with Chrysler to sell to the US market?

[OzJavelin]

It's American Motors revisited ..

AMC merged with Renault, killed off what was left of the company and Chrysler bought the carcass for the Jeep marque.

Chrysler merge with Fiat, kill off Chrysler, Chrysler sell Jeep toTata.

Maybe someone should convince Toyota to buy Jeep? Jeep seems pretty good at killing of parent companies (Willy's, Kaiser, AMC) ... Toyota would be a nice scalp!!

[Joey_Falcon]

I also herd off someone, correct me if im wrong, that TATA also bought Landrover?

[T3ts50]

Originally Posted by Bunyip_Chaser

I also herd off someone, correct me if im wrong, that TATA also bought Landrover?

True, along with Jaguar.

[vztrt]

You see alot of the TATA's in India look like Jeeps. There is a market over there (I can understand since the roads are terrible (you average 50k/h on the national highway).

Also TATA would be buying everything it can, they have alot of money and have their finger in so many industries. Just a few of my head are cars, trucks, heavy machinery, steel manufacturing, mobile network and satelite TV. There would be more but I cant remember or don't know.

[V3RSAC3]

Originally Posted by vztrt

Also TATA would be buying everything it can, they have alot of money and have their finger in so many industries. Just a few of my head are cars, trucks, heavy machinery, steel manufacturing, mobile network and satelite TV. There would be more but I cant remember or don't know.

My family used to francise TATA Vehicles going back 6odd years ago ... they also do Buses, Tea, and Alcohol if im correct?

[Joey_Falcon]

If you ask me Tata is the most ridiculous name for a motor company. Like "tata ill see you later"

[V3RSAC3]

Originally Posted by Bunyip_Chaser

If you ask me Tata is the most ridiculous name for a motor company. Like "tata ill see you later"

It's their Surname, if i remember rightly

[Joey_Falcon]

I wonder what their slogans would be; Here is a few I thought of:

Built TATA Tough

TATA motors - say Tata to the competition

TATA - I just said goodbye to one

[XR6_190]

This would be very interesting, seeing how they already own Land Rover, one simple plan for domination, buy out your competitors, they will probably be as big as Toyota soon if they keep going like this.

[Bossxr8]

GM is shopping the Hummer brand too, and apparently have a few interested parties. Maybe Tata is one of them?

[vztrt]

Originally Posted by XR6_190

This would be very interesting, seeing how they already own Land Rover, one simple plan for domination, buy out your competitors, they will probably be as big as Toyota soon if they keep going like this.

Yep, this will happen. They are also a very diverse comapny so are well footed even in an economic downturn.

[Joey_Falcon]

Do you think they would open up new plants in India or just use the existing plants scattered over the globe?

[Zed7fiddy]

i cant see them being very big in other countries though, i woul dnever buy a TATA vehicle, but i would buy a Jag, Landrover or a Jeep, so a very good idea for them!

[V3RSAC3]

Originally Posted by 84RGE

i cant see them being very big in other countries though, i woul dnever buy a TATA vehicle, but i would buy a Jag, Landrover or a Jeep, so a very good idea for them!

i wouldn't say that until you've driven one :P : ...

they're not actually a bad vehicle, destroyed pretty much all of the Aussie released 4x4's (Toyota, Nissan, Land Rover) on the 4x4 test tracks that they have at the car shows

[GS608]

bar that, why would Chrysler sell its most profitable brand? they're basically down the shitter if they do that as chrysler isn't selling many cars at all, dodge are barely scraping through, jeeps the only brand that sells continuously, and if they sold off to an indian company you could probably say goodbye to its US fanbase as it won't be the good ol american truck anymore

[Mark^^]

From what I have heard Chrysler is selling Mahindra another licensing agreement to build Jeeps for sale in India. This is not the first one sold to Mahindra, as there have been Mahindran Jeeps on the sub continent for decades licensed from previous CJ models.

[Gammaboy]

Originally Posted by Bunyip_Chaser

I wonder what their slogans would be;

"Its a TATA thing"