• Feb 13, 2009
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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  • 20 Comments
      • 5 Years Ago
      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.
      • 5 Years Ago
      I'd rather have the Abarth 500 than a Chrysler Versa.
      • 5 Years Ago

      I am beginning to wonder whether Chrysler is going to survive much longer.
      • 5 Years Ago
      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)
      • 5 Years Ago
      Thank god the Titan name has been saved from that horrid idea of sticking a Nissan Titan badge on a rebodied Ram!
        • 5 Years Ago
        Yea, 'cause the '09 Titan is sooo superior to the '09 Ram (rolls eyes).
      • 5 Years Ago
      I can see why this would happen given FIAT's involvement, but I was really looking forward to a production version of the Hornet!
      • 5 Years Ago
      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.
      • 5 Years Ago
      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
        • 5 Years Ago
        Well, I definitely won't buy a Versa for our dirt road then, although I might buy a Frontier.
        • 5 Years Ago
        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.
        • 5 Years Ago
        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!
      • 5 Years Ago
      I am really hoping to see a production Hornet...a Mini for hetero men...
      • 5 Years Ago
      Man, that pic of the little car looks 100000x better than Nissan's Cube.
      • 5 Years Ago
      Well, since Fiat has small car platforms and is now partnered and owning 1/3 of Chrysler it makes sense that Chrysler would use Fiat's platforms and not Nissan's.
      • 5 Years Ago
      Shame, i think BOTH would have benefited.
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