Chrysler has been front and center in the news this week, announcing a product-sharing deal with Nissan, as well as looking at expanding its partnership with Chery Automotive in China.

Now reports from Germany’s Handelsblatt newspaper are claiming that Chrysler is in an advanced state of talks with Fiat, with an eye to teaming with the Italian automaker for possible production in the U.S. Fiat has been looking for idle capacity at auto plants as it plans Alfa Romeo’s American return, and has discussed cooperation with BMW or Detroit Three companies.

Meanwhile, Fiat chief technology officer Harald J. Wester revealed to Handelsblatt that the much-celebrated Fiat 500 minicar will be offered for sale in the U.S., though no time frame was given. Wester said that the American market 500s would be built either in the U.S. or at one of Fiat’s existing facilities in South America.

+ Motor Authority: Fiat in talks with Chrysler, confirms 500 for U.S.

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