January 14, 2009 - Chrysler, Detroit MI

Chrysler: Reports of sale talks are false

Chrysler LLC is not in talks with its largest supplier, Magna International Inc. to sell the automaker's assets, nor is the Auburn Hills company is discussions to sell any of its brands, Chrysler President Tom LaSorda said today.

Chrysler: Reports of sale talks are false

Chrysler LLC is not in talks with its largest supplier, Magna International Inc., to sell the automaker's assets, nor is the Auburn Hills company in discussions to sell any of its brands, Chrysler President Tom LaSorda said today.

“We will not separate the brands from the company,” LaSorda said this morning during a conference call with reporters intended to “set the record straight,” after a report surfaced Tuesday night that the company is in discussions with Magna and Renault Nissan to sell key assets.

Reuters news service released that report Tuesday, saying the automaker is in talks to sell the Jeep brand, factory tooling for the PT Cruiser and its plant in Belvidere, Ill., which makes the Dodge Caliber and two Jeep models, and hand off production of those models to Magna.

LaSorda said flatly that the company is not in discussions to sell the Jeep brand or to sell the Belvidere plant. He also said Chrysler would be interested in selling the PT Cruiser, whose life cycle ends this summer. Chrysler, however, does not have any offers on the model, he said.

Chrysler is not currently in talks with Magna, he said. Talks about a potential partnership in Russia, after Magna bought the tooling for an older-model Sebring to build in Russia, were put on hold as the U.S. and Russian economies deteriorated.

LaSorda said there are no talks with Renault and that its deal with Nissan -- to make trucks for Nissan, and the Japanese automaker to build small cars for Chrysler -- remains.

Moreover, he said, any substantial deal would need the approval of the federal car czar.

“If we were to sell any assets … the loan agreement would never allow us to do that without going through the car czar,” LaSorda said.

Original Story - Detroit Free Press