Aug. 29 (Bloomberg) -- Chrysler LLC, the U.S. automaker now controlled by Cerberus Capital Management LP, is proposing to sell or close at least two non-automaking units as part of its contract talks with the United Auto Workers, two people familiar with the negotiations said.

The businesses are the Mopar parts operation and Chrysler Transport, according to the people, who didn't want to be identified because the talks are confidential. The two units employ about 1,300 people.

Cerberus, now operating Chrysler as a private company, is attempting to wring more costs from the third-largest U.S. automaker. The New York private-equity firm bought an 80.1 percent stake in Chrysler on Aug. 3, ending a nine-year merger with Stuttgart, Germany-based DaimlerChrysler AG.

``Selling auxiliary units will allow Chrysler to focus on its core business,'' said Yoko Yoshimura, an analyst in Tokyo at Global Insight Inc. ``It's better to get out sooner than later.''

The UAW opposes a sale because of potential job losses, the people said.

The Wall Street Journal online reported the Mopar and Chrysler Transport discussions yesterday. Chrysler spokesman David Elshoff and UAW spokesman Roger Kerson declined comment.

Mopar provides auto parts and accessories for the company's vehicles. Chrysler would keep the Mopar brand while transferring warehouse operations to another entity, the people said.

Chrysler Transport coordinates hauling of supplies among plants and offices in the U.S. and Ontario, Canada. Chrysler in February said it would consider exiting the transport business.

Contract Talks

Chrysler and the UAW began contract talks July 20 to replace a four-year contract that expires Sept. 14. Ford Motor Co. and General Motors Corp. are also negotiating new contracts.

The three U.S. automakers view the talks as a chance to end or reduce losses that amounted to a combined $15 billion in 2006.

Chrysler Chief Executive Officer Bob Nardelli is meeting today with about 300 executives of the automaker to discuss their vision for the company, spokeswoman Shawn Morgan said. Nardelli canceled a scheduled appearance yesterday at the two-day conference because he was sick, Morgan said.

The deadline for workers to choose whether they will stay with Chrysler or with its former partner is in two days.

Robert Liberatore, a Washington lobbyist for Chrysler before the merger, will stay with Daimler as group senior vice president for global external affairs and public policy, Elshoff said.

Sue Unger, former chief information officer for DaimlerChrysler, will stay with Daimler and retire at the end of the year, Elshoff said.

Thomas Hausch, Chrysler's vice president of international sales, will stay with Chrysler, the spokesman said.

To contact the reporters on this story: Jeff Bennett in Southfield, Michigan, at Jbennett17@bloomberg.net; John Lippert in Southfield, Michigan at jlippert@bloomberg.net

Last Updated: August 29, 2007 14:22 EDT