A vehicle-supply project between Nissan and Chrysler was shelved due to varied circumstances. Though it was not said directly, it seems that this had something to do with Chrysler’s tie-up with Fiat with regards to the supply of small vehicles for the global market.
The deal between Nissan and Chrysler started as early as the first quarter of 2008 which called for Nissan to supply small vehicle for the global market in 2010 and a compact sedan for the South American market at the beginning of this year to Chrysler. Nothing really materialized and was further compounded when the Chrysler-Fiat deal started in January of this year.
Also, one other factor is the current global situation. Both Nissan and Chrysler had halted production until they could come up with improved returns from operations. And as we know, Chrysler eventually filed for bankruptcy and later on announced a new alliance with Fiat which all but put the previous alliance of Nissan and Chrysler terminated.
Nissan was scheduled to have supplied Chrysler with an all-new, fuel-efficient small car made in Japan in exchange for a full-size pickup truck made by Chrysler in Mexico. Apparently all of these plans are a thing of the past as Chrysler is now tied up with Fiat for small vehicle distribution.
(Source) Reuters India
Tags: Bankruptcy, Chrysler, distribution source, drop project, Fiat, first quarter, global situation, India, Japan, Mexico, new alliance, Nissan, pickup truck, project partnership, Small Car, south american market, vehicle distribution