GAZ's involvement in Canadian auto parts maker Magna International Inc.'s bid for Chrysler was not the Russian automaker's first contact with Chrysler, which instead was acquired by Cerberus Capital Management LP. Chrysler currently supplies engines to GAZ, and it recently sold the tooling to build the old Sebring sedan, after Chrysler introduced a new design (pictured).
A venture with GAZ would provide Chrysler entry into the Russian auto market. If the reports of talks are true, then Cerberus evidently is seeking to expand Chrysler through international growth. Currently, the Auburn Hills, Mich., automaker, the smallest of the Big Three, is dependent on North American sales, unlike Ford Motor Co. and General Motors Corp., which have extensive international reach.
A possible venture with GAZ is one of the many changes that Cerberus has put in place since taking over the carmaker from Germany's Daimler AG. Other changes include:
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Hiring former Home Depot Inc. and General Electric Co. executive Bob Nardelli as CEO, and various other top management from Toyota Motor Co.
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Negotiating a new labor contract
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Cutting products
Additionally, Chrysler is rumored to have other plans on the table including an entire rebranding of its three nameplates and a thinning of its dealer network. — Matthew Wurtzel
See story from The Detroit News
See Dealscape: Cerberus continues to fine tune Chrysler
See PE Pipeline: Chrysler LBO debt heads to market
See Dealscape: Nardelli to kill Chrysler products
See Dealscape: Chrysler, UAW reach pact
See Dealwatch: Chrysler
After failing to win Chrysler LLC at auction earlier in the year, GAZ is in talks to partner with Chrysler in a Russian manufacturing venture to serve the fast-growing Russian car market, 
