Chrysler holds emergency meeting

Rumours are abounding at the Detroit show that in-trouble US carmaker Chrysler is about to be broken up in a series of buyouts - but that's absolutely not the case, claims the maker.

The rumours followed reports that an assembly plant in Illinois is to be sold to a supplier, Magna, and also that Renault-Nissan is about to purchase Jeep from Chrysler - the firm widely regarded as the most beleaguered of the Detroit three.

So Chrysler has quickly moved to rubbish the report on Jeep's sale, calling it "absolutely false" - and claiming that any such sale would require Government approval under the terms of the recent bailout. Renault has also quashed the story, despite reportedly being keen to buy back the brand it sold to Chrysler 20 years ago. Chrysler is known to be keen on selling production licences for some of its cars, which would allow manufacturing to be taken on by third parties for new markets, as well as forming alliances with other makers. The Sebring, for example, was sold to Russian maker GAZ and is sold as the Siber in Russia.

But for now, at least in the short term, Chrysler is not being broken up. Of course, that could change if its parent company, venture capitalist Cerberus, decides enough is enough.

Mark Nichol