Fiat,Chrysler in partnership talks: Source

The source said a deal with Fiat would help Chrysler make vehicles that produce fewer harmful emissions.

8220;To get financing,US car makers have to show that they are really committed to developing over the short term a new family of vehicles that pollute less,8221; the source said. 8220;By itself,Chrysler would not be able to meet this condition.8221;

The talks between Fiat and Chrysler were reported by auto industry publication Automotive News Europe earlier in the day on its website http://www.autonews.com.

The publication cited unnamed sources as saying Fiat could take a stake of up to 35 per cent in Chrysler and give the US automaker access to platforms,engines and transmissions.

Chrysler,the No. 3 US-based automaker behind General Motors Corp and Ford Motor Co received 4 billion of US government loans to avert collapse and Chief Executive Bob Nardelli said last week it was counting on 3 billion more.