Chrysler/Nissan partnership frozen, Ram-based Titan and Chrysler small car in jeopardy
Times are tough all over the auto industry, but the situation at Chrysler seems to be far more dire. Chrysler's sales numbers are significantly worse than they are elsewhere in the industry, with January sales plunging by 55%. In December, the Pentastar received $4 billion from the U.S. government to keep from going insolvent. Very little good news has trickled out of Auburn Hills as of late, and that isn't changing today.
Chrysler and Nissan have decided to freeze their product sharing program indefinitely, citing a need to make sure profit targets can be met. Chrysler was to receive its own version of the Nissan Versa, and in exchange, Nissan was to receive its own version of the Dodge Ram. As disappointing as this news is for Chrysler and Nissan, few are likely surprised. Nissan, while healthier than Chrysler, is going through its own rough patch, with a loss expected for the year and 20,000 job cuts on the way.
Chrysler's potential tie-up with Fiat could also complicate matters, as Chrysler stands to have access to several of the Italian automaker's small cars. Chrysler said in a statement that the tie-up is reportedly on hold until the end of the first quarter, when a further announcement will be made. Considering the woeful market conditions around the world, we're not at all hopeful that the Nissan/Chrysler tie-up will be revived. We're still holding out hope for a Dodge Hornet, though, with either Fiat or Nissan underpinnings. Thanks for the tip, Brian!
[Source: CNN Money]
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Reader Comments (Page 1 of 2)
John 9:11AM (2/13/2009)
This is just more writing on the wall of things to come within the next year for Chyrsler. Very sad.
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Sea Urchin 9:11AM (2/13/2009)
Shame, i think BOTH would have benefited.
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hypermiler 9:16AM (2/13/2009)
Well, it is obvious that Chrysler's small cars would now be Fiat based.
This leaves door open for Nissan's Dodge truck business take over.
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Sea Urchin 9:24AM (2/13/2009)
Thing is, when will those cars come. If cool, profitable cars are not here by this time next year, it could be too late.
MikeW 9:20AM (2/13/2009)
Now Nissan is going to have to put the 7 speed auto into the Titan (and Frontier. and Pathfinder, Armada/Qx56, Xterra, and Infiniti EX)
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jim 9:37AM (2/13/2009)
Nissan has already announced the discontinuation of the current Titan/Armada platform and its Infinity siblings, will this result in their withdrawal from the full size, light truck market? They could base the SUVs on the Patrol platform, but what of the pickups?
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travisty 9:45AM (2/13/2009)
I'd rather have the Abarth 500 than a Chrysler Versa.
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Yikes 9:49AM (2/13/2009)
Me too
RobbA 9:54AM (2/13/2009)
Thank god the Titan name has been saved from that horrid idea of sticking a Nissan Titan badge on a rebodied Ram!
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Frank 11:20AM (2/13/2009)
Yea, 'cause the '09 Titan is sooo superior to the '09 Ram (rolls eyes).
Cellien 11:24AM (2/13/2009)
Man, that pic of the little car looks 100000x better than Nissan's Cube.
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jamie 11:37AM (2/13/2009)
Chrysler says restructuring talks making progress
http://www.reuters.com/article/marketsNews/idCAN1352362920090213?rpc=44
WASHINGTON, Feb 13 (Reuters) - Chrysler LLC is making progress in talks with creditors and the United Auto Workers union on a restructuring plan required under a federal bailout, a senior Chrysler executive told Reuters on Friday.
The executive, who spoke on condition of anonymity, also said the company was preparing to submit a turnaround plan to the government on Tuesday, the deadline set by the Bush administration. In the plan, Chrysler will offer one option for viability as a standalone company and another that would involve a strategic partnership, he said.
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Jrejre 12:34PM (2/13/2009)
This is very bad for Chrysler. It would've taken long enough to get that small car to market using the versa platform which is already sold in the U.S. But now that they're relying on fiat it's going to take even longer since they'll have to adapt the car to U.S. standards first. I'd be surprised to see this hornet or anything like it from Chrysler within 3 years.
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Hamhock 12:53PM (2/13/2009)
I am really hoping to see a production Hornet...a Mini for hetero men...
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jamie 12:54PM (2/13/2009)
Chrysler official: No Fiat deal closing by Tuesday
http://finance.yahoo.com/news/Chrysler-official-No-Fiat-apf-14356275.html
DETROIT (AP) -- The deal for Italian automaker Fiat SpA to take a 35 percent stake in Chrysler LLC will not be finished until after Chrysler submits a restructuring plan to the federal government, a Chrysler official said Friday...
Chrysler has said that Fiat's vehicle architecture and engine technology are worth billions and would allow Chrysler to get small cars to market five or six years faster than Chrysler could on its own. Fiat also would get access to Chrysler's U.S. distribution network and its emissions control and large-vehicle technology...
Those moves, coupled with Fiat's potential 35 percent stake, could leave Cerberus and Daimler with combined ownership of less than 10 percent, according to independent auto industry analyst Erich Merkle.
"My understanding is it would be the banks and the UAW that would own the company when they're done. They would be the larger stakeholders," Merkle said.
Although a Fiat deal would mean Italian company owns 35 percent of the company, it would still create American jobs, justifying the loans, Press said.
With the Fiat deal gaining momentum, Nissan Motor Co. of Japan said Friday it has suspended plans for Chrysler to produce a Nissan pickup truck and Nissan to produce a small car for Chrysler.
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BigWill 2:46PM (2/13/2009)
Fiat's CEO describing Fiat's cash-free investment in Chrysler as buying a "lottery ticket" speaks volumes about the depth of Fiat's support.
Michael McKinney 1:04PM (2/13/2009)
As a married couple whose last five cars/ trucks have all been Nissans, we ask you please DO NOT BUY NISSAN. We have bought them exclusively for over 10 years and weren't prepared for this. I bought a new 2007 Versa after being convinced by the salesman that it was the perfect car to replace my last two Frontiers. I live and work in a rural area. With rising costs and a test drive down two rough roads, one of them a dirt and gravel railroad access road along Hwy 231 in Bay County, Florida, to prove how solid it was, I purchased it on the spot.
The struts went out within the first thousand miles. I took it to the dealership and they replaced them. Two thousand miles later they were worn out again. I returned again to the dealership and they replaced them again, telling me that Nissan had acknowledged the strut design was defective. I asked if I should return it for something else and was assured Nissan was working on the problem.
The service manager at the time told me not to worry about this as a warranty issue, because it was a defective part design and would be honored by Nissan. They have been replaced 5 times since then. Each time I was told Nissan was working on the problem.
Now, Nissan has told me by telephone that they will no longer accept responsibility for repairing the Versa. I was told by a woman from Nissan that it was determined the Versa's struts weren't designed for rural and dirt roads. She told me I shouldn't have bought something that wouldn't hold up. Now, the warranty is expired at a little over 40,000 miles.
That's the last I've heard from Nissan. So much for honor.
Now the struts are rattling and making noise and I'm afraid the car is going to fall apart on the road, possibly causing harm to me or others.
Their word means nothing.
I'm retiring in 6 months and was going to treat myself with a new Nissan Rogue, but not now. I will buy a new car, but it won't be a Nissan. My wife traded in her Sentra for a new Nissan Altima in 2003 and was going to buy a new Altima. Not now.
We bought Nissan exclusively because we liked the product and the service. Now, I can't imagine ever owning another.
Mike and Maggie McKinney
15312 Blue Springs Road
Youngstown, FL 32466
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whofan 2:20PM (2/13/2009)
Treat yourself to a new Ford Fusion instead.
Latest reports indicate that Ford beats Toyota in quality.
Japanese cars have been overated for years.
By the same standard I don`t really trust reports on Ford either.
Its more fad and hype than anything else on whats the in or out thing.
Come back home and try some American iron. YOUR COUNTRY NEEDS YOU!
BigWill 2:48PM (2/13/2009)
1) Ummm ... hadn't you heard of lemon laws?
2) Get a factory service manual and learn how to replace the struts yourself. After a little practice - and unless you get rid of that Versa you're going to get a lot of it - you'll be able to replace those struts blindfolded.
The Luigiian 5:57PM (2/13/2009)
Well, I definitely won't buy a Versa for our dirt road then, although I might buy a Frontier.