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Chrysler chief confirms tie-up talks

The chief executive of US car company Chrysler says it is talking to 'third parties' interesting in exploring closer links.

But Bob Nardelli would not specifically confirm news reports that Chrysler has had talks with General Motors about a deal to combine the number one and number three US car makers.

'I can tell you that we have approached and have been approached by third parties who are interested in exploring future possibilities with Chrysler,' Nardelli said in an e-mail to employees that was obtained by the Reuters news agency.

He said in the e-mail that the credit crunch presented a more serious issue to the car industry than high petrol prices.