Breaking News: Forbes Reports Nissan Will Build Small Cars For Chrysler

[Perian]

Link: http://www.forbes.com/2008/01/10/nis...rtner=yahootix

Nissan And Chrysler In Small Car/Big Truck Alliance
Vivian Wai-yin Kwok, 01.10.08, 8:10 AM ET


HONG KONG - Nissan Motor, Japan's third-biggest automaker, is preparing to produce fuel-efficient small vehicles for Chrysler, taking a different route to enhance its presence in American market despite concern about a slowdown there.

The two auto firms are in the final stages of negotiation on a deal for Nissan to supply Chrysler with small car models with an engine displacement of around 1.8 liters, Japanese broadcaster NHK reported on Thursday.

The pact is expected to boost Nissan’s sales in the U.S. market and to help Chrysler make a turnaround from its recent weakness, attributed in part to an overdependence on light truck sales, the report said.

A Nissan spokeswoman confirmed the ongoing talks with Chrysler but stressed nothing has been decided.

Talk of Nissan-Chrysler cooperation has been circulating around the auto industry since last fall. And the synergy of allying Japanese small car technology with U.S. big truck expertise seems evident.

Nissan, which rolled out its Altima Hybrid in 2006 and is developing electric cars that will be introduced in America by 2012, could bring Chrysler into the hybrid car market quickly and cheaply. Chrysler, in turn, could provide one-ton pickups, commercial vans and heavy truck components for Nissan, which has been struggling with the poor sales of its second-generation Titan full-sized pickup.

After failing to reach a comprehensive three-way alliance with its French partner Renault and General Motors more than a year ago, Nissan has been seeking an alliance with other U.S. automakers to maintain its U.S. sales amid fresh fears about a recession.

[Perian]

Small cars for Chrysler from Nissan.

Large trucks for Nissan from Chrysler.

Less market-risk for each.

Just about perfect.

[OrlandoGuy80]

I'm imagining the Crossfire face on a Versa ...

[Lichtronamo]

How can this get Chrysler hybrid tech immedately? Nissan licenses its Altima hybrid from Toyota. Didn't Chrysler participate in the two mode hybrid GM is now rolling out on the Tahoe?

[CobaltSScrazy]

Originally Posted by Perian

Small cars for Chrysler from Nissan.

Large trucks for Nissan from Chrysler.

Less market-risk for each.

Just about perfect.

No profits for Chrysler on small cars or minimal at that.

Huge profits for a Ram rebadge for Nissan.

Little risk for each partner.

Another Japanese automaker sucking marketshare and profits off a Big 3 in an unfair agreement.



CobaltSScrazy

[CrunkedRL]

Wow this may be the kiss of death for Chrysler Ghosn finally got his wish. Once again another company will profit more from Chrysler than it being the other way around...how sad.

[jkennedy293]

Originally Posted by Perian

Small cars for Chrysler from Nissan.

Large trucks for Nissan from Chrysler.

Less market-risk for each.

Just about perfect.

This is very similar to the relationship GM had with Isuzu in the 90's.

[derrado]

So Chrysler will be getting small cars from both Nissan and Chery?

[1G6]

RIP reborn American Chrysler.

May 14, 2007 - January 10, 2008

We hardly knew ye.

[1G6]

Originally Posted by jkennedy293

This is very similar to the relationship GM had with Isuzu in the 90's.

Except for the fact that GM owned a sizeable slice of Isuzu.

Renault will get Chrysler's excellent trucks (and the Cummins) to replace the limited Titan, and Chrysler will trade its mediocre cars for slightly less mediocre cars from Renault. In reality, this only helps Renault.

[Buick61]

Originally Posted by Lichtronamo

How can this get Chrysler hybrid tech immedately? Nissan licenses its Altima hybrid from Toyota. Didn't Chrysler participate in the two mode hybrid GM is now rolling out on the Tahoe?

I think it's because 2 mode is proving to be a truck/SUV-only system. Hybrid Synergy Drive (or whatever Nissan remarkets it as) is apparently better for smaller cars.

[Buick61]

Originally Posted by 1G6

RIP reborn American Chrysler.

May 14, 2007 - January 10, 2008

We hardly knew ye.

This makes no sense. Nissan isn't taking over Chrysler, they're just sharing products. Just like Chrysler has done in the past with Mitsubishi. And GM with Isuzu. And Ford with Mazda. And so on and so on.

[andy82471]

Originally Posted by 1G6

RIP reborn American Chrysler.

May 14, 2007 - January 10, 2008

We hardly knew ye.

It is either an "unholy" alliance or RIP Chrysler period. Chrysler will not survive as an independent stand alone company. And Cerberus's patience with Chrysler is running out.

[triadecho]

Will they be known as Chrysans?

[eaton53]

Rebadging a Dodge truck really worked for Mitsubishi. I think I've seen one.