Chrysler Corp. says an unspecified number of its dealers will have Peugeot and Citroen cars in their showrooms, but stops short of saying whether a merger with the French automaker is in the works.
Chrysler owns about 14 percent of the French company, which loaned the No. 3 U.S. carmaker, $100 millon in March as part of Chrysler's overall $3.5 billion and package.
The agreement was among the Chrysler Loan Guarantee Board's list of requirements for Chrysler to meet in order to qualify for $1.5 billion in federal aid.
In a statement confirming the agreement, Chrysler said Monday that negotiations with Peugeot-Citroen continue on several other industrial agreements contemplated by the two carmakers as outlined in a February 1980 memorandum.
Included in those possible joint ventures is an agreement by the two to produce a Peugot-designed passenger car at Chrysler plants. The car would be sold under the Chrsyler and Peugeot-Citroen names through their respective distribution markets.
Chrysler also confirmed that an initial set of agreements to purchase mechanical and automotive parts from Peugeot-Citroen could be reached "in the near future" Chrysler also is interested in purchasing Peugeot's four-cylinder diesel engines.
In other auto industry news:
Ford Motor Co. plans to assemble and sell a fuel-efficient Japanese-made passenger car in the Asian and Pacific region under its own brand name.
Toyo Kogyo Co., maker of Mazda cars, said the American plan involves the lastest model of the front-wheel-drive Familia car.
Yoshiki Yamasaki, president of Toyo Kogyo, said "no final decision has been reached yet but the project depends on whether it will benefit both companies."
Ford and Togyo already have implemented a similar project on small-sized trucks with Ford's subsidiary in Australia, Asia Pacific Ford Co., building Toyo Kogyo trucks for sales in Asia under the Ford name.
The two firms have been affiliated since late last year.
Japan's Isuzu Motors Ltd. announced it will begin selling its diesel cars and trucks in the United States next year through a newly formed joint venture, American Isuzu Motors Inc., with C. Itoh and Co., one of Japan's giant trading concerns, at an initial cost of $10 million. The U.S. company will be 80 percent owned by Isuzu.
Isuzu makes the Chevrolet Luv pickup truck for General Motors Corp., which holds a 34 percent stake in the Japanese company.
American Motors Corp., which for several years has been buying four-cylinder enginers from General Motors, is planning to produce its own four-cylinder engines from GM's Pon-1982, the Metal-working News edition of American Metal Market said.
AMC makes its own six- and eight-cylinder engines, but buys 2.5-liter four-cylinder engines from GM's Pontiac Division.