Nissan, Chrysler Deal Suspended

The product-sharing deal that would have brought new trucks to Nissan (NSANY) and new small cars to Chrysler has been terminated.

The end of the deal made in January 2008 was announced yesterday in a brief release issued by both companies. By the terms of the deal, Chrysler was to supply Nissan with a full-sized truck based on its Ram pickup. That vehicle would have replaced Nissan's next-generation Titan, starting in 2011.

In return, Nissan was to provide Chrysler with a compact vehicle to sell in South America starting in 2009, and with a small car to sell worldwide starting next year.

The arrangement has been shelved, of course, due to the "significant changes in business conditions since the projects were announced in January and April of 2008," the release notes. Since then, Chrysler has entered and exited Chapter 11 bankruptcy and has brokered a deal with Fiat to exchange a minority stake in its automotive operations for help with engineering future products and improving its small-car technology.

The Chrysler-Fiat deal will result in Alfa Romeo and Fiat cars being sold in the U.S. through Chrysler dealers and other channels, and a deeper cooperation in product planning that will produce vehicles for sale around the world by both companies.

Chrysler will continue to buy transmissions from Nissan's affiliate, JATCO.

Comments

[MotoretrendUSAYEs]

Toyota will close the Fremont CA factory and put 4.500 workers out of jobs in 2010 in spite of the factory building high demand Corolla. This closing gives Toyota the same public reputation as WalMart now: WM closed a Texas store and a Canada store as soon as some of their workers joined unions by saying the stores suddenly became "unprofitable"
The Fremont NUMMI plant was the foothold in the US for tiny Toyota many years back with GM $ millions and GM help and was Toyota's ONLY unionized factory in the US (their Japanese factories are unionized).
The Fremont factory made Corollas that are currently in HIGH DEMAND as well as highly regarded Pontiac Vibes (GM should keep it under Chevy or Buick brands).
- Toyota now reveals it is as tight and as stingy and as ugly as WalMart in wishing to not pay for health insurance, living wages, and pensions by closing their only UAW plant and shifting the production of the Corolla to other US plants who employ part timers who do not get such benefits
All in spite of those hippie dippie Prius commercials by Toyota....Hypocrites

2009 Aug 29 01:42 PM

[beentheredonthat]

Wages and benefits, some might say, are the least of the concerns when it comes to unionization in general and the UAW specifically

2009 Aug 29 06:46 PM