Splitsville: Nissan, Chrysler End Product-Sharing Deal

August 26, 2009

The product-sharing deal that would have brought new trucks to Nissan and new small cars to Chrysler has been terminated.

The end of the deal made in January 2008 was announced today in a brief release issued by both companies. By the terms of the deal, Chrysler was to supply Nissan with a full-sized truck based on its Ram pickup. That vehicle would have replaced Nissan's next-generation Titan, starting in 2011.

In return, Nissan was to provide Chrysler with a compact vehicle to sell in South America starting in 2009, and with a small car to sell worldwide starting next year.

The arrangement has been shelved, of course, due to the "significant changes in business conditions since the projects were announced in January and April of 2008," the release notes. Since then, Chrysler has entered and exited Chapter 11 bankruptcy and has brokered a deal with Fiat to exchange a minority stake in its automotive operations for help with engineering future products and improving its small-car technology.

The Chrysler-Fiat deal will result in Alfa Romeo and Fiat cars being sold in the U.S. through Chrysler dealers and other channels, and a deeper cooperation in product planning that will produce vehicles for sale around the world by both companies.

Chrysler will continue to buy transmissions from Nissan's affiliate, JATCO.

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