The American Repossessor

DETROIT (Reuters) – Chrysler is in talks to take back a Sterling Heights, Michigan, assembly plant that it had abandoned in bankruptcy, a move that could save about 1,200 jobs once expected to be eliminated by the end of 2010.

U.S.

Chrysler, which emerged from bankruptcy in June under the management control of Fiat, has been offered a tax break from the Sterling Heights City Council if it keeps the plant open, and has until February 16 to reach a deal to take it back, Chrysler spokeswoman Jodi Tinson said on Wednesday.

As part of Chrysler’s bankruptcy restructuring last year, the plant was placed with OldCarco LLC, the shell company that represents the assets of Chrysler that remain in bankruptcy and were not bought by Fiat.

The plant, which makes the Chrysler Sebring and Dodge Avenger sedan, employs approximately 1,200 workers represented by the United Auto Workers union.