Nissan and Chrysler Part Ways

by Edward Niedermeyer

Published: August 26th, 2009

Back in loony desperation of pre-bailout Cerberus-era Chrysler, plans were floated for Chrysler to build a Ram-based Nissan Titan in exchange for a ChryCo-branded version of the Nissan Versa (and possibly the Altima). Now that Fiat is running things in Auburn Hills though, Chrysler has access to modern compact and mid-sized platforms. And Fiat doesn’t want Chrysler paying Nissan to help it compete in South America, one of Fiat’s most important markets. According to Automotive News [sub], the break “leaves Nissan with a bigger problem than any facing Chrysler.” Namely, the Titan question. Wait, seriously? Nissan recently killed off the Quest and Infiniti QX56 to make more room in its Canton plant for diesel-powered light commercial vehicle production. If/when the economy does start coming back, that market could be a better place to be than the crowded, cutthroat full-size pickup market. Alternatively, Toyota is drowning in Tundra capacity. If Nissan wants to be in the pickup market so badly that it’s willing to beg for a rebadge, that seems like the place to start. Release after the jump.

Nissan and Chrysler today announced a mutual agreement to end three OEM vehicle-supply projects announced last year.

For the past several months, teams from both companies have been studying the viability of the projects in light of significant changes in business conditions since the projects were announced in January and April of 2008.

Today, it was decided it was in the best interests of both companies to end the projects.

The projects had involved:

1. Nissan providing to Chrysler a compact sedan for the South American market beginning this year.

2. Nissan providing to Chrysler a small vehicle for global markets beginning in 2010.

3. Chrysler providing to Nissan a full-size pickup truck starting in 2011.

A separate agreement involving the supply of transmissions from Nissan affiliate JATCO to Chrysler remains unchanged. That agreement has been in effect since 2004.

Edward Niedermeyer

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Windswords on Aug 27, 2009

"A separate agreement involving the supply of transmissions from Nissan affiliate JATCO to Chrysler remains unchanged." That's a shame because those tranny's suck. Nissan is the loser here, not Chrysler. Their truck is perrenial loser in sales, it's already long in the tooth compared to it's competitors, and Nissan doesn't have the money to redesign it. So you can kiss it good-bye. Chrysler needed a competive small car, and it will still get one from FIAT, but it will take longer than if they had went with the Versa, and probably won't include a Hornet model :-(

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PWarren4 on Aug 27, 2009

Nissan and Toyota seriously need to re-think their fullsize truck market presence. I'd go so far as saying an abandonment order is due. IMO, a return to the trucks they used to build is long overdue. The Frontier and Tacoma are more comparable to the F150s and Silverados of their respective last generation models than to the small pickups they replaced. This is fine, (I have one of those Tacomas and throughly enjoy it) but next a return to basics is needed. And they better hurry up before Mahindra eats both of their lunches and steals their girlfriends. E.G. - Mahindra Review

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