Fiat Chrysler and VW Group, two of the world's largest automakers, could be joining forces in production of a range of light utility vehicles, according to a new report. Sources suggest that talks between the two are in the very early stages, but that development and production would include a new panel van, and a new small pickup.

According to The Wall Street Journal, the two companies could cooperate in production of a new VW Caddy panel van, as well as the VW Amarok midsize pickup truck. Both the Caddy and the Amarok are sold outside of the U.S., but it’s still unclear, if produced, where these new models would be sold. Fingers crossed that they'll make their way to the U.S.

Gallery: 2016 Volkswagen Amarok

This report comes just days after Chinese auto giant Great Wall had suggested a takeover of Jeep, and rumors that FCA could spin off Maserati and Alfa Romeo entirely. "It's still very vague, we have to see if this will be pursued," the unnamed source said said in a statement to The Wall Street Journal.

For now, VW is reportedly not pursuing a takeover of FCA or Jeep. Sources suggest that VW believes the FCA situation would be "complicated and difficult" to complete. As you may remember, VW is currently in the midst of its own $25 billion Dieselgate scandal.

FCA, meanwhile, will continue to focus on more mass market vehicles within its portfolio, including Jeep, Dodge, and Ram, as it continues to entertain potential Chinese buyers and plot a possible spinoff of Maserati and Alfa Romeo. Already the company partners with the Chinese automaker GAC in development of vehicles like the Fiat Viaggio, Jeep Cherokee, and others.

Source: The Wall Street Journal

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