Chrysler LLC is looking at foreign partners to slash costs after experiencing a slash in its sales and deterioration of its outlook. It had been acquired by Cerberus Capital Management LP last year and has struck a deal with Nissan Motor Co. to manufacture their trucks. It is now looking an alliance with Tata Motors to assemble and sell Jeeps in India. Tata Motors is already working with Chrysler on its battery-powered version of Tata's mini truck, Ace, for distribution in overseas markets.
Fiat already has a partnership with Chrysler and Tata to handle the financing of Tata's Jaguar and Land Rover brands in Europe. On the other hand, Tata has already shook hands with Fiat for its marketing rights to be handled by Fiat for its ultra-cheap car, Nano.
Currently, Tata captures more than 60 percent of the market share for trucks and bus. Chrysler aims to capture the Jeep market in India with Tata Motors especially for the Indian army.
"Chrysler LLC is scrambling to slash costs and line up partnerships with foreign auto makers to shore up its finances amid a painful downturn in sales and a deteriorating outlook for the company," reported Wall Street Journal quoting people acquainted with the matter.
