Breaking news from FT.com - Chrysler and Fiat in joint venture talks

View an online version of this email here.  All times are London time: Monday Jan 19 2009 Breaking news Chrysler and Fiat in joint venture talks Chrysler and Italy's Fiat are in talks over creating a joint venture that would give Chrysler the ability to build and sell Fiat cars in North America, according to people close to the matter. One person involved in the talks said the two companies have agreed in principle on a deal to give Fiat a 35 per cent stake in Chrysler and an option to later buy a majority of the company. Fiat had no comment, and Chrysler could not be reached. In exchange for a possible stake in the struggling US automaker, Fiat would help finance the re-tooling some of Chrysler's factories to manufacture Fiat cars and components and give Chrysler access to its technology, according to the person involved in the talks. Fiat would not inject any cash into Chrysler under the agreement. The person said the two companies have signed a memorandum of understanding on the alliance, which could be announced within days. Read more » ABOUT THIS EMAIL You have received this email because you have signed up for this briefing on FT.com Manage subscriptions | Unsubscribe | Change your email address Change whether you receive this email as HTML or plain text | Forward this email to a friend Privacy policy | Advertise | Contact © Copyright The Financial Times Ltd 2009. "FT" and "Financial Times" are trademarks of the Financial Times. The Financial Times Limited, registered in England and Wales number 227590. Registered office: Number One Southwark Bridge, London SE1 9HL. VAT number GB 278 5371 21.