By Shawn Langlois

SAN FRANCISCO (Dow Jones) - Chrysler was quick to throw water on reports Wednesday that Jeep and other assets are on the chopping block, sticking to CEO Bob Nardelli's insistence over the weekend that the company is not preparing for a fire sale.

In what's shaping up to be an ongoing whirlwind of speculation as to the eventual fate of Chrysler, Reuters reported that the company is discussing the sale of its marquee Jeep nameplate to the Renault-Nissan (NSANY) partnership as well as other moves like handing over its PT Cruiser model to emerging Chinese automakers.

Shortly thereafter, Chrysler Vice Chairman and President Tom LaSorda refuted the reports in a press conference, telling reporters that Jeep is not for sale nor does Chrysler have plans to sell plants or separate any brands from the company.

But a big merger, like the one mulled between Chrysler and General Motors Corp. (GM) late last year, is what Sen. Bob Corker, a Tennessee Republican and vocal auto industry critic, suggested on Tuesday would make Chrysler more viable.

Corker attended the Detroit auto show this week to meet with representatives from the domestic automakers, which will have to prove to the government at the end of March that the $17.4 billion in loans extended to GM and Chrysler are being put to good use.

A merger, however, would fly in the face of what Nardelli told reporters from the sidelines of the Detroit auto show on Sunday. He said recent white collar layoffs and senior executive departures are not moves aimed at making the ailing automaker more attractive to suitors.

He also warned that Chrysler's cash supply is dwindling to a low point in January and the company and its Cerberus Capital Management owner is looking to get their hands on the remaining $3 billion in loans that the government agreed to last month.

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