Chrysler and Nissan have been working together on new products since last year. Specifically, Nissan was going to build a small car for Chrysler, while Chrysler would build a new full-size pickup truck for Nissan. While the agreement seemed to work well for both parties, things have apparently changed, and now the plans have been postponed due to skyrocketing costs. The plan outlines products that both Chrysler and Nissan truly needed. Despite the setbacks, it seems as though Chrysler will still be selling a rebadged Nissan Versa sedan soon.
Economic conditions have placed plenty of strain on both Chrysler and Nissan, cites one Nissan dealer Connecticut. With costs rising and sales dwindling, all automakers are shuffling new product priorities. While many will get the axe, Chrysler is still in dire need of a compact, and the rebadged Nissan Versa seems ideal. In addition to selling here in the States, Chrysler is also expected to sell the Versa in South American as well.
As for Nissan, the plan puts the fate of the next generation Nissan Titian in question. As part of this deal, the Nissan Titan was going to be derived from the Dodge Ram pickup. Additionally, a fuel efficient small car was also going to be built by Nissan using a Chrysler design.
Chrysler has been hoping for valuable partnerships, especially after its split from Daimler AG. Hartford Chrysler dealers say Nissan seemed be an ideal fit, especially for its success in the small car segment, where Chrysler has suffered. Nissan on the other hand has had little success making profits in the full-sized truck segment, which is exactly where Chrysler has had tremendous success thanks to the Dodge Ram pickup, an ever-popular model among Chattanooga Dodge dealers.
Unfortunately for both automakers, Hartford Dodge Jeep points out that the economic environment and their financial situations have worsened since solidifying the deal. Chrysler has submitted its plans for viability to the U.S. Treasury in its attempt to keep billions in federal bailout loans coming. Additionally, Nissan just announced a projected $2.9 billion loss for the current fiscal year, while Nissan expects to see nearly 20,000 jobs cut globally.
Despite the dissolved plans for new vehicles, the Chrysler-Nissan partnership is not expected to interfere with Chrysler’s involvement with Fiat, which puts Hartford Chrysler and many others at ease. However, Chrysler will now have access to more small cars, thanks to Fiat’s expertise at building compact vehicles for the European market. Meanwhile, Nissan is struggling to keep things moving while the value of the yen continues to fall. Needless to say, both companies hope to keep their heads above water while the auto industry remains in a depressing state.
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Changes to future Chrysler vehicles can be found on this blog.
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