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]