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| Nissan, Chrysler discussing car, truck supply, Saw I had this in my in box. Reuters December 14, 2007 - 1:10 am ET TOKYO -- Nissan Motor Co. and Chrysler LLC are in preliminary discussions to supply cars, trucks and engines to each other, a source close to the talks said on Friday. Both Nissan, Japan's third-biggest automaker, and Chrysler, which was acquired this year by Cerberus Capital Management LP have similar original equipment manufacturing (OEM) deals with other carmakers aimed at saving development costs in an increasingly competitive industry. Over a year ago, Nissan and its French partner Renault SA broke off talks with General Motors Corp over a comprehensive three-way alliance. While Nissan-Renault Chief Executive Carlos Ghosn has said the alliance could still seek a U.S. partner in future, the discussions with Chrysler are on a smaller, product-by-product level, the source said. A Nissan spokeswoman declined to comment. No one at Chrysler could immediately be reached. Nissan has deals with several automakers, including Japan's Mitsubishi Motors Corp. and Suzuki Motor Corp. Suzuki said this week Nissan would build a mid-sized pickup truck based on the Frontier model at its plant in Tennessee to be sold under the Suzuki badge in North America. Chrysler, whose strengths are in minivans and light trucks, has agreements with South Korea's Hyundai Motor Co., Mitsubishi Motors, Volkswagen AG and China's Chery Automobile Co. and others for the supply and procurement of vehicles. Carmakers around the world have sought operational tie-ups, especially in recent years as the race to develop advanced environmental technology intensifies.
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| TOKYO -- Nissan and Chrysler are in talks to produce vehicles for each other, but Nissan CEO Carlos Ghosn has not directly conferred with Chrysler LLC CEO Robert Nardelli, says an industry source familiar with the talks. The source says the two sides have not decided whether to do the deal. But a decision could come in a matter of weeks, the source says. For Chrysler, working with Nissan would give it badly needed access to small, fuel-efficient cars, a segment where the Detroit automaker lags. Nissan, meanwhile, could tap Chrysler's strength in minivans and pickups, a soft spot in its lineup. "Every manufacturer has strengths and weaknesses," the source said. "This allows you to get into new segments at a much lower cost than you could by doing it on your own." One scenario sees the companies providing cars or trucks to each other that will be rebadged, the source says. The automakers also are examining a deal to share components. Nissan Motor Co. officially declined comment on whether it is in talks with Chrysler. But Nissan in Japan has similar arrangements with other automakers. It buys and rebadges commercial vehicles from Mazda and Isuzu and minicars from Mitsubishi and Suzuki. In reverse, it sells commercial vehicles to Isuzu and minivans to Suzuki. In 2008, Nissan will build a mid-sized pickup for Suzuki at Nissan's factory in Smyrna, Tenn. The pickup will be based on the Nissan Frontier. Under the new ownership of Cerberus Capital Management, Chrysler is looking for outside alliances to reduce product development costs. It already has a deal with China's Chery Automobile Co. to produce small cars for world markets, including the United States. A car for U.S. dealerships is due in 2009. Nardelli has said Chrysler will lose $1.6 billion this year. He also has slashed four vehicles from the future lineup and laid off thousands of workers. Meanwhile, Nissan and its French partner Renault SA are still open to a three-way tie-up with an American manufacturer following last year's breakdown in talks with General Motors. Discussions between Nissan and Chrysler have more modest ambitions, though. If they develop, the source says, they would likely focus on product-specific cooperation. |
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| Seems they made the deal. Nissan will produce a small car for Chrysler in Japan (for the US market) and Chrysler will build the replacement for the Titan in their Mexico plant. Quote:
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| I haven't read anything that says the Titan will be replaced. What I've read is that when Chrysler starts building the truck for Nissan Nissan will halt production of the Titan. I really have a hard time believing that the Chrysler built truck won't be called a Titan but I guess anythings possible. Time will tell, but I think what this is all about is manufacturing lines, tooling, factories and experience. Chrysler has the experience and factories to build large trucks while Nissan has the experience and factories to build small cars and small trucks. Makes sense to me. |
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| Squid, did you notice the one paragraph in Tox's Wall Street Journal link, "The move by Nissan to drop the Titan reflects the increasing competition in the full-size truck segment, and the impact of Toyota Motor Corp.'s recent push to boost its share of it." I'm not quite sure what to make of this statement, i.e., does "drop" mean they will no longer manufacture the truck (having Chrysler produce it for them instead), or does "drop" mean Nissan will discontinue the Titan altogether at some point? Hmmm.....
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| I happen to own 2 Titans, and have yet to have a single problem from either. That being said, no matter what happens, in a way, all of us owe a thanks to Nissan for the Titan. They were the first to raise the bar, thereby forcing the other manufacturers to compete. I can't imagine any of the "Big Three" voluntarily improving their truck offerings. |
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i think i would have to agree........... Mark |
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