Chrysler looks to Nissan for mid-size car pact: report

NISSAN Motor Co and Chrysler LLC are negotiating a new deal that would see their product collaboration extended to include medium-sized cars, according to a report in the Wall Street Journal last week.

Chrysler representatives in the US have refused to comment, fuelling speculation that the talks – which include the prospect of Chrysler selling Nissan-built mid-size sedans in the US as if they were its own – are at an advanced stage.

According to the report, Chrysler is evaluating whether it makes financial sense to team up with Nissan.

If the deal is stuck, the Sebring nameplate could be applied to the Japanese-built Maxima – and Chrysler could receive an instant boost in quality as a result.

Left: Chrysler Sebring.

In April, the two companies announced an agreement that would see Nissan building (in Japan) an all-new global small-car from 2010 based on a Chrysler concept and design, and Chrysler building (in Mexico) a full-size pick-up for Nissan from 2011 based on a Nissan design.

Nissan will also supply Chrysler with a new car based on the Tiida/Versa for limited distribution in South America from 2009.

Nissan affiliate JATCO has supplied Chrysler with transmissions since 2004.

At the April announcement, executives from both Nissan and Chrysler said they had agreed to “maintain an open dialogue to explore further product-sharing opportunities”.

“Forging the right tactical partnerships is critical to the long-term success of Chrysler,” said Chrysler president and vice-chairman Tom LaSorda.

“It also builds on the company’s inherent strengths, including the ability to respond rapidly and creatively to emerging opportunities.”