Nissan and Chrysler get cosy

Chrysler and Nissan have signed agreements for a two-way exchange of products, taking advantage of the respective companies' production capacity and design resource.

A small car -- designed by Chrysler, but manufactured by Nissan at the company's Oppama plant in Japan -- will be sold as a Chrysler in global markets from 2010.

Chrysler will build a Nissan-designed full-size pick-up at the plant at Saltillo in Mexico. Production of models currently being built at this plant will be transferred to US plants to accommodate the new truck, which will be badged and sold as a Nissan. From 2011, this vehicle will likely compete in the US with Toyota's Tundra model and American domestic models such as the Ford F150.

The new agreements build on another recently signed by the two companies for the supply of the Nissan Versa sedan (or Tiida, as we know it in Australia) as a Chrysler in South America (more here).

Chrysler has previously sourced components from Nissan-owned transmission supplier, JATCO, but this is the first occasion that Chrysler and Nissan have engaged directly in a B2B relationship.

"In January, we said we would continue to look for additional OEM opportunities with Chrysler," said Carlos Tavares, Executive Vice President, Nissan Motor Company.

"This latest agreement builds on Nissan's proven track record to deliver win-win product exchanges with multiple manufacturers around the world."

British publication Autocar has inferred from this announcement that the small car will resemble the Hornet concept unveiled at the Geneva Motor Show in 2006, possibly built on the Micra platform. Furthermore, the article suggests that there may be further product-sharing projects between the two companies, possibly leading to an acquisition of the Chrysler Group by Nissan and parent company Renault.

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