Nissan and Chrysler Part Ways
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.
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