Chrysler in Talks to Sell Key Assets: Report

Updated from 1:25 a.m. EST

Chrysler is in talks to sell key assets to Renault-Nissan and Canadian auto supplier Magna(MGA), Reuters reports, citing people with knowledge of the discussions.

Renault-Nissan and Chrysler, which is owned by Cerberus Capital, had some contact about a sale of all or parts of the U.S. automaker last year before the U.S. government in December stepped in to bail out Chrysler and General Motors(GM).

Reuters reports the current talks with Renault-Nissan gathered momentum in recent weeks and have included discussions about a deal to sell Chrysler's Jeep brand.

Representatives of Chrysler, Cerberus, Magna and Nissan had no comment, according to Reuters. A spokeswoman at Renault, which owns a controlling 44% stake in Nissan(NSANY), denied talks were under way with Chrysler.

Chrysler CEO Bob Nardelli said this week that he wasn't preparing to sell the struggling automaker.

Citing people familiar with the talks, Reuters reports Chrysler also has discussed selling its assembly plant in Belvidere, Ill., to Magna in exchange for long-term production contracts.