Latest Automotive News

Subscribe in a reader

Chrysler signs deal for Nissan to supply `Chrysler' car for South American sale

Email   small font medium font large font


Nissan and Chrysler have reached a deal to have Nissan supply cars to Chrysler for sale in South America starting next year, the automakers said Friday.

The model, based on the Nissan Versa sedan, will be supplied under what is called an OEM, or ``original equipment manufacture,'' agreement in the auto industry.

That means Japanese automaker Nissan Motor Co. will supply the cars, which are also sold as Nissan models, to Chrysler LLC so the U.S. automaker can sell them under its own brand.

Such OEM agreements are fairly common among automakers and should not be confused with major alliances like the one Nissan has with Renault SA of France. But they can help cut costs and strengthen product offerings immediately.

Detailed terms of the agreement were not disclosed.

``This kind of tactical partnership allows us to maximize product offerings yet minimize costly investments,'' said Chrysler president Tom LaSorda, adding that the agreement will allow Chrysler to add a small car in its lineup.

Nissan and Chrysler agreed to keep exploring other possible ways to share products, they said in a joint release. A Nissan affiliate has been supplying Chrysler with transmissions since 2004, it said.

``Nissan has a successful track record of win-win product exchanges, and we are pleased to be entering into this second agreement with Chrysler,'' said Carlos Tavares, Nissan executive vice-president.

Chrysler, which makes the Jeep Wrangler and Dodge Charger, has been eager to expand international sales through tie-ups, partly to expand in emerging markets to offset declining U.S. sales.

Nissan has also flirted with the idea of a U.S. partner, to solidify its position in North America, but its talks with U.S. automaker General Motors Corp. in 2006 stalled.

Nissan CEO Carlos Ghosn, who also heads Renault, has said the company is open to partnerships if they have potential to be successful like the Renault-Nissan alliance.

Nissan, Japan's No. 3 automaker, produces the March subcompact, Infiniti luxury models and GT-R sportscar. It turned itself around from near-bankruptcy under the 1999 alliance with Renault.

Chrysler, which had been losing money, became a private company in August after Cerberus Capital Management LP became the majority owner, buying an 80.1 per cent stake from German automaker Daimler AG.

Last year, Chrysler announced a deal with China's biggest independent car company, Chery Automobile Co., to jointly produce and export small cars to Western Europe and the United States.

Receive the latest automotive news by email!

Enter your email address:

Related news
Chrysler LLC and Nissan Motor Co., Ltd., today announced two new agreements for the supply of products between both companies. In January, Nissan agreed to supply Chrysler with a new car based ...
The board of the Japanese automaker Nissan agreed today to open talks with General Motors on a possible alliance. Major G-M shareholder Kirk Kerkorian proposed last week that the troubled American carmaker join ...
PARIS (AP) _ The board of Renault SA on Monday approved opening talks with General Motors Corp. over a possible new alliance with the French automaker and Nissan Motor Co. if the ...
Chrysler LLC on Thursday announced a new executive vice- president position to expand alliances with overseas automakers, something that industry analysts say shows a new sense of urgency to find partners outside of ...
Sweden's AB Volvo said Monday it will spend about 500 million Swedish kronor (US$69 million) to raise its stake in Japan truck maker Nissan Diesel Motor Co. to 19 per ...
Automaker Daimler AG, which sold most of its stake in Chrysler earlier this year, posted a loss of 1.53 billion euros (US$2.18 billion) for the third quarter, largely because of writeoffs related to ...
BERLIN (AP) _ Automaker DaimlerChrysler AG said Friday it has completed the transaction to sell a majority stake in its U.S. Chrysler arm to private equity firm Cerberus. Shareholders will be asked to ...
Local union leaders voted overwhelmingly Monday to recommend approval of a tentative four-year agreement between the United Auto Workers and Chrysler LLC, paving the way for a vote by members, UAW president Ron ...
As they assembled cars Thursday, workers at Chrysler's Sterling Heights assembly plant were talking about their new labour contract, wondering if Wednesday's six-hour strike was enough to get a good deal from the ...
Italian carmaker Fiat Auto and China's Chery Automobile Co. Ltd. announced Tuesday they have signed a memorandum of understanding to supply gasoline engines for Fiat cars produced both in and ...

Best Investment Newsletter

- 46% in 2008

- invest in the best performing US stocks only and sell them when the uptrend is over

- very easy to follow, simple buy/sell signals

- no need to have investing or trading experience

Find More Now!

Chrysler signs deal for Nissan to supply `Chrysler' car for South American sale
> © 2006-2017 except where otherwise noted