BREAKING: Chrysler and Nissan announce major supply agreements, shared products
Following the announcement this past January that Nissan would be supplying Chrysler with a new car based of the Versa's platform, the two automakers announced today that more exchange is on the horizon, including a new small car for Chrysler and a Dodge-based pickup for Nissan.
The unnamed small car will be built by Nissan in Japan utilizing a Chrysler design and will be sold in North America, Europe and other markets in 2010. On the other side of the spectrum, Chrysler will build a full-size pick-up for Nissan that will share design cues with the rest of the Nissan line and be built at Chrysler's Saltillo Assembly Plant in Mexico. Sales of the pick-up will begin in North America in 2011.
The move is part of an effort by both automakers to utilize each other's global manufacturing facilities and finally gets Carlos Ghosn, Nissan's CEO, the American automaker partnership he's been looking for since last year.
We're hoping on a conference call with Nissan to see if either automaker releases more information, but in the meantime check Chrysler's press release after the jump.
UPDATE: No word on whether or not the new Nissan pick-up will use Chrysler's hybrid drivetrain. Nissan spokespeople are not calling this a partnership, rather an "OEM exchange" and nothing more.
UPDATE 2: The Nissan pick-up will be a full-size light truck.
UPDATE 3: The Chrysler small car will be on a Nissan-developed platform and will be covered in Chrysler-designed sheetmetal. The platform will not be based of the Versa. Nissan reps couldn't answer any questions about whether or not the small car will share any design cues from the Dodge Hornet concept.
UPDATE 4: We're going to hop onto the the Chrysler conference in a bit and will update this post with information as it happens. Check back in about 30 minutes for more.
UPDATE 5: Chrysler and Chery are still working together. Chery has Chrysler drivetrain people working with them now. Chery-developed B-segment model is still in the offing, but no idea when it could come to the U.S.
UPDATE 6: Chrysler's design team just wrapped up styling of the small car, so it's doubtful that it will share many cues with the Hornet concept. Too bad, since the Hornet was well received. LaSorda says, "it's a beautiful design."
PRESS RELEASE
Chrysler LLC and Nissan Motor Co., Ltd. issued the following press release on Monday:
AUBURN HILLS, Mich / TOKYO (April 14, 2008) – Chrysler LLC and Nissan Motor Co., Ltd., today announced two new agreements for the supply of products between both companies. In January, Nissan agreed to supply Chrysler with a new car based on the Nissan Versa sedan for limited distribution in South America on an Original Equipment Manufacture (OEM) basis in 2009.
This new OEM exchange benefits both companies through range extension and the utilization of global manufacturing capacity. Highlights of the new agreement:
Nissan will manufacture an all-new, fuel-efficient small car based on a unique Chrysler concept and design. This new segment entry for Chrysler will be sold in North America, Europe and other global markets in 2010, and manufactured at Nissan's Oppama Plant in Japan.
Chrysler will manufacture a full-size pickup for Nissan. Based on a Nissan unique design, this truck will be manufactured at Chrysler's Saltillo (Mexico) Assembly Plant. In order to accommodate this product, Chrysler will shift volume from Mexico to its U.S.-based assembly plants that produce pickup trucks. Sales of the pickup in North America will start in 2011.
This latest OEM supply agreement extends a long standing product exchange relationship between the two corporations, with Nissan affiliate JATCO already supplying Chrysler with transmissions since 2004.
"Forging the right tactical partnerships is critical to the long-term success of Chrysler," said Tom LaSorda, Chrysler LLC President and Vice Chairman. "It also builds on the Company's inherent strengths, including the ability to respond rapidly and creatively to emerging opportunities."
"In January, we said we would continue to look for additional OEM opportunities with Chrysler," said Carlos Tavares, Executive Vice President, Nissan Motor Company. "This latest agreement builds on Nissan's proven track record to deliver win-win product exchanges with multiple manufacturers around the world," continued Tavares.
Since the signing of the first OEM agreement in January, the two companies have also agreed to maintain an open dialogue to explore further product-sharing opportunities.
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Reader Comments (Page 1 of 3)
amdforever 5:36PM (4/14/2008)
The new 2009 Chryssan Sebring-Maxima.
THE HORROR!!!!!11111!!!111!
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geo.stewart 6:09PM (4/14/2008)
and it continues to build. no more than 3 yrs off and Renault will buy chrysler from cerebrus. everyone here has seen it coming and these are the first steps. a try before you buy, if you will...
carlos is on the move.
Victor 5:37PM (4/14/2008)
An Ameri-Japa-Frenchie car!......weird...
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Victor 5:39PM (4/14/2008)
As a follow up, the I wonder if you can get the ultimate negatives of all three makers? -Chrysler's stick-beaten design + Nissan's horrible US mfg. quality + weird French design and reliability?
jgp 5:43PM (4/14/2008)
We need more weird French design in the US.
Citroëns are sexy. Especially the C6--its interior and exterior put everything else in its class to shame.
jgp 5:44PM (4/14/2008)
And yes, I know Renault owns Nissan, not PSA, but I was just making a point about French design in general.
Kumail 5:39PM (4/14/2008)
good move for both, nissan needed a good pick-up to compete and chrysler has always needed a decent small car. the pt cruiser was pitiful.
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JZeke 5:48PM (4/14/2008)
could u say it was P T ful?
sorry, lol.
John 6:00PM (4/14/2008)
I agree. I admit, at first blush I was wondering what the hell Nissan was thinking, but the arrangement makes sense. Chrysler desperately needs a small car of some sort while Nissan's Titan is getting long in the tooth (and never really won over much of the full-size market). The deal plays to both their strengths and aims to compensate for both their weaknesses.
epilonious 7:44PM (4/14/2008)
Where is this "awesome small car" that Nissan makes?
The Versa and the Sentra? Really?
I know the altima and the 350z will be glorious replacements for the avenger/sebring things... but frankly the versa and sentra feel a lot like the PT cruiser and the caliber.
Kumail 8:18PM (4/14/2008)
i never said "awsome," but i did say "decent."
RLQ 5:48PM (4/14/2008)
Hemi powered Z/GT-R or TTV6 powered Challenger. ;)
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rouse42 5:47PM (4/14/2008)
so whats this gonna mean for the titan?
sales gonna get worse?
looks like good news for the Tundra.
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Franz 5:51PM (4/14/2008)
I think they're already planning to kill the Titan if it doesn't do better:
http://www.autoblog.com/2007/12/16/ghosn-hints-at-killing-nissan-titan/
MUSASHI66 6:04PM (4/14/2008)
They are pairing slow selling Nissan product with the worst selling Big 3 pick-up... I wonder how that's going to work.
RamSport47 7:19PM (4/14/2008)
Almost 400,000 per year is nothing to sneaze at...to say it's "the worst selling" is not giving much credit. Plus, there is the ALL NEW 2009 coming which is what this Nissan will be based on.
havoc 5:53PM (4/14/2008)
yes chrysler needs a small car, but i fear for the future of nissan trucks.
i had a 95 xe kc v6 hardbody that is probably still runnign today (go vg!)
and a 05 frontier with the vq. both trucks were nearly flawless. maybe i was just lucky but i wouldn't have bought a rebadged dakota, ala mitsu raider. and "Based on a Nissan unique design" my azz, it'll prob be a ram with a titan nose.
so good for chrysler, bad for nissan
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Jason 6:09PM (4/14/2008)
FWIW, we've been extremely happy with our '06 Ram 3500 (not dually).
That said though, I wouldn't by a Dakota, but mainly only because it's just flat ugly. And somehow, the Mitsu version is even worse looking.
havoc 6:21PM (4/14/2008)
ha, anyone remember the commercial for the raider?
the opposing truck was a vq frontier with blacked out grill (looked better than the chrome bars!).
maybe a new full sized could be a good move, since toyota made the tundra bigger...
introducing the Chryssan Gigantor!
i think nissan coudl have done well with a large truck, but they have no history in it. the small/compact truck from nissan was a huge seller, even during the lesser early frontier years (no v6). i thought the titan was a great idea, it's 5.6 out powering most other full sized, and it had the acceleration of a mild sports car, best in class towing, most powerful standard engine (i think they boasted a few other things). maybe they should have built them in mexico instead of the US.
John 6:34PM (4/14/2008)
I wonder if Chrysler will still look to Chery for small cars? Looking at Chery's quality, I'm guessing Chrysler will use Nissan for US Spec cars and Chery for their Mexico and South American markets where quality doesn't need to be that high.
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