In the hope to cut costs, automobile major Chrysler LLC plans to pep up its finances by making partnerships with Tata Motors.

The source close to the company say, “Chrysler LLC is scrambling to slash costs and line up partnerships with foreign auto makers to shore up its finances amid a painful downturn in sales and a deteriorating outlook for the company.”

The reports are also that Chrysler had discussions with Tata Motors about sell and possibly assemble jeeps in India. The company might also have had talks about leasing one of its US plants to produce cars for Italy's Fiat SpA.

One of the most popular newspaper, recently reported that Chrysler has been exploring alliances since it was acquired a year ago by Cerberus Capital Management LP, and has mapped out a deal to make trucks for Nissan Motor. Both sets of talks are preliminary and may not lead to deals.

The report also said that because the vehicles sales of the company saw a down turn in the US, Cerberus has become more concerned about Chrysler’s ability to turn around on its own and has stepped up efforts to reach out to foreign car companies.

The sales of the vehicles by Chrysler in US fell 22 percent in the first half of the year. Since then it has only worsened and nothing else. Sources are also saying that the company is having parallel discussions with Fait and Tata and also other automobile companies.  

The company might also offer early retirement packages to salaried employees as a step in cost-cutting efforts. These offers are also a part of an effort to trim its white-collar work force by 1,000.