New York  - Automakers Chrysler LLC and Nissan Motor Co are in talks to significantly expand cooperation and jointly produce a mid-size car, the Wall Street Journal reported Thursday.

According to people familiar with the talks, Japan's Nissan would build a mid-size sedan that US firm Chrysler would sell and market under its own name in the United States.

The two companies already agreed on a separate partnership in April: Chrysler will sell a Nissan-built subcompact car in the US from 2010, and Nissan will in turn market a Chrysler-produced pickup truck in Japan.

Chrysler already has a similar deal on small cars with Chinese automaker Chery Automobile Co.

The new talk of alliances comes as Chrysler has been suffering heavy losses in sales and profits, along with other US automakers. The US market has not been much rosier for foreign makers in recent months amid a surge in petrol prices and wider economic slowdown. (dpa)