The Wall Street Journal reports the two companies are discussing a broad-ranging alliance that would add to their agreements to build trucks and cars for each other. Last year, the pair announced a plan in which Nissan would supply Chrysler a small car for sale in markets outside the U.S., derived from its Versa hatchback, and would engineer a new small car for Chrysler for sale in the U.S. For its part, Chrysler will develop the next Titan for Nissan.
The new reports say the companies are embarking on a "radical" plan that if approved, would lead Chrysler to cease development on passenger cars. The Detroit News says Chrysler is still working on Plan D, which would revamp Chrysler's mid-size Avenger and Sebring sedans. Chrysler is also working on a planned restyling of its 300/Charger sedans for the 2011-2012 time frame.
A pairing with Nissan would be a logical move, because there's so little overlap in expertise. Like Northwest and Delta teaming up, Chrysler and Nissan excel in what the other company doesn't--Chrysler's minivans, Jeeps and big trucks are the perfect complement to Nissan's Altima, Z, and Infiniti lineup. It also fits the pattern of alliances that Nissan's talked up for a decade--and Chrysler's owners at Cerberus might be keen to tap for a quick product fix.
What's your take--is Chrysler better off tying its future to Nissan, or does it have a better plan to go it alone? Tell us in a comment below.