TOKYO - Nissan Motor Co. and Chrysler LLC, looking to cut costs in the increasingly competitive global auto industry, are in talks about possibly producing cars, trucks and component parts for one another, a person familiar with the situation said, according to The Wall Street Journal.

Nissan and Chrysler are seeking ways to take advantage of each other's strengths. Nissan would benefit from Chrysler's experience producing large trucks, while Chrysler would want to borrow Nissan's expertise in building smaller, fuel-efficient cars.

The automakers are also considering ways to collaborate on manufacturing power-train systems, the person familiar with the talks said, confirming earlier media reports of the discussions. This person said that the talks were still in preliminary stages and no decisions were likely for two or three months, according to The Wall Street Journal.

Nissan spokesman Simon Sproule in Tokyo said, "We have always said we remain open to this kind of relationship. We have a lot of successful [original equipment manufacturing] deals." One example of such collaboration was Nissan's announcement last week that it would build midsize pickup trucks for Suzuki Motor Corp. at a Nissan manufacturing plant in Smyrna, Tenn.

While the talks with Chrysler are focusing on similar product-level partnerships, Nissan Chief Executive Carlos Ghosn remains open to a deeper alliance with a U.S. auto maker. After months of discussions last year, Nissan and its French partner, Renault SA, failed to reach an agreement on a three-way alliance with General Motors Corp, reports The Wall Street Journal.

Nissan is trying to gain a foothold in the lucrative pickup-truck segment in the U.S., but has struggled to gain much market share. Chrysler is the traditional No. 3 pickup supplier behind Ford Motor Co. and GM.

Speaking to reporters in Detroit, Chrysler Chief Executive Robert Nardelli said reports of talks with Nissan were "probably a lot on speculation," though he noted the number of alliances throughout the industry.

Chrysler, which was acquired in August by private-equity group Cerberus Capital Management LP, has been looking for new ways to cut costs. Mr. Nardelli recently began a push to get Chrysler to source more parts and components from low-cost countries. It now does virtually all of its $40 billion a year in purchasing in North America.

But with U.S. gasoline prices hovering around $3 a gallon, and the U.S. Congress considering a bill raising fuel-efficiency standards, Chrysler needs to add other small cars to its lineup. It is short of resources, however. Mr. Nardelli has told staffers the company is on track to losing $1.6 billion this year.

Chrysler is also seeking partners to help it expand vehicle sales in international markets. It recently worked out a deal with Chery Automobile Co. that calls for the Chinese auto maker to produce a subcompact car that will be sold by Chrysler's Dodge brand.