Such a deal would help Chrysler bring badly needed small cars into its showrooms while helping Fiat move into the American market with the Alfa Romeo brand and an update of its Fiat 500.
The positive trading update had a familiar ring to it, since other supermarket groups in Britain have also surprised the market with strong sales over the holiday season: J Sainsbury's like-for-like sales rose by 3.7% in the 13 weeks to Jan. 2, while retail bellwether John Lewis said its sales rose 12.7% in the five weeks to Jan. 2.