Chrysler news

Gaz, the Russian truck, van and busmaker, is in talks with Chrysler and General Motors about possible joint projects in passenger car production. Leonid Dolgov, chief executive of Gaz s car division, told the Financial Times it was no secret his company was involved in talks with Chrysler. The Russian carmaker buys engines from Chrysler for its Volga sedans and Gazelle delivery vans. Next year it intends to launch a rebranded version of the Chrysler Sebring.

Mr Dolgov said: If we are successful with this first pilot with Chrysler, we would like to see how we could be of value to each other in the future . Separately, Mr Dolgov said that Gaz - controlled by billionaire Oleg Deripaska - had signed a letter of intent with GM in September to develop an affordable car . Chrysler declined to comment but a spokesman confirmed its ongoing relationship with Gaz .

A Moscow-based GM official would say only , saying: GM is always negotiating different opportunities on the market. Russia s domestic carmakers have unused production capacity, and the Kremlin is thought to be keen to build one or more national champion carmakers as foreign companies profit fromthe country s automotive boom. Mr Dolgov said Gaz wanted to produce mid-size cars and compact sports utility vehicles that might be made on the same production platform.

Non-Russian carmakers have had success with mid-size and small cars such as the Renault Logan and the Ford Focus, taking the title as Russia s top-selling foreign car. While declining to specify models or timetable for any tie-up with Chrysler, Mr Dolgov said: The car market is a constant race of investment, and we would like to leverage on our partner s experience. Gaz says it will announce full details of its passenger car strategy next year.