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Nissan to Supply Chrysler with Small Car for South America Market
11 January 2008
Chrysler LLC and Nissan Motor Co. announced an agreement for Nissan to supply Chrysler with a new car for limited distribution in South America. Based on the Nissan Versa sedan, the new car will be supplied to Chrysler on an Original Equipment Manufacture (OEM) basis in 2009.
The OEM supply agreement is the second product exchange between the two corporations, with Nissan affiliate JATCO already supplying Chrysler with transmissions since 2004.
This kind of tactical partnership allows us to maximize product offerings yet minimize costly investments, such as new plant infrastructure, tooling and R&D. This partnership will give Chrysler nearly immediate access to vehicle segments in which we do not currently compete.
—Tom LaSorda, Chrysler LLC President and Vice Chairma
The two companies have also agreed to maintain an open dialogue to explore further product-sharing opportunities.
Last year, Chrysler and China’s Chery Automobile agreed to work together to develop, manufacture and distribute Chery-made small and sub-compact cars in North America, Europe and other major automotive markets under the Chrysler brands. (Earlier post.)
January 11, 2008 in Brief | Permalink | Comments (4) | TrackBack (0)
Comments
Posted by: ejj | January 11, 2008 at 09:43 AM
ejj:
Chrysler and the other Big Three cannot build a small car economically in USA or in Canada. Their labour cost are much too high.
Since smaller cars are in high demands, what can they do? Alliances with, Mexican, Japanese, Chinese and Indian manufacturers seem to be a way out.
The Big Three future may be restricted to niche markets (larger 3-tonnes vehicles) that many Americans love and need due to their (40% and going up) overweight large size.
Posted by: Harvey D | January 11, 2008 at 10:02 AM
ejj:
Chrysler and the other Big Three cannot build a small car economically in USA or in Canada. Their labour cost are much too high.
Since smaller cars are in high demands, what can they do? Alliances with, Mexican, Japanese, Chinese and Indian manufacturers seem to be a way out.
The Big Three future may be restricted to niche markets (larger 3-tonnes vehicles) that many Americans love and need due to their (40% and going up) overweight large size.
Posted by: Harvey D | January 11, 2008 at 10:05 AM
Building "small" cars in North American may cost more than a third world country, but it a tired excuse from the so called "automakers" based in the US.
Just about all of the Japanese automakers build cars in the US and Canada. Hyundai does now too as of last year.
The US "shareholder groups" need to start building better cars. There seems to be some life lately, lets hope they keep up the good work and not fall to the pressure of wall street.
Posted by: Bill W | January 15, 2008 at 09:16 AM
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This is a bad brand-weakening move on Chrysler's part. It reminds me of my Dodge Colt that I drove in high school - which was actually made by Mitsubishi and had it's fair share of problems. This is not a good corporate strategy when they need to fix their company & strengthen their brand.