Fiat confirms partnership talks with Chrysler: Daimler to sell stake

Fiat’s (FIA.MI) vice Chairman has confirmed that the Italian carmaker is in partnership talks with Chrysler, the third largest U.S. automaker. John Elkann had told reporters “That we are talking is not a mystery.” Fiat’s shares are suspended from trading today pending a statement from the company, which should come sometime later today.

Daimler (DAIGn.DE) has also confirmed that they would like to sell their almost 20 percent stake in Chrysler, and have said that they welcome any initiative that could help to stabilize the situation with the U.S. automaker.

If the deal between Fiat and Chrysler goes ahead, then it would help Fiat return to the U.S. market and also allow Chrysler to produce smaller less polluting cars. Chrysler has to show the U.S. government that they are committed to developing new vehicles that have less harmful emissions, and with Fiat on board, they could do just that.

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