Helpful Alliance: Nissan and Chrysler
by JOE KENT
In perhaps a very unsurprising development, Chrysler and Nissan have announced that they will be undergoing model sharing and will leave the door open to extensive product sharing plans. In this new plan, Nissan will allow a Chrysler designed compact car to be built at a Nissan plan in Japan based on a Nissan platform, presumably the Versa chassis. Likewise, Nissan will be allowed to manufacture a full-size truck based on the Ram platform in their Mexico based plant.
This partnership provides a solid deal for Chrysler and Nissan. Nissan needs a bold new full-size truck to stay competitive in the truck market, especially as more consumers think twice about their purchases with rising fuel prices. Their Titan pickup was a late comer to the market, and has struggled with numerous issues to continue to lure buyers away from competitors. Chrysler's lineup on the other hand has an established and popular truck lineup, but lacks a strong compact car presence as more consumers are opting for smaller, fuel-efficient cars.
Since Daimler sold Chrysler to Cerberus Capital Management, CCM has been working to turn the company around, and perhaps find another buyer.
Chrysler has been struggling for sometime, hence their split from Daimler. The partnership will help produce a stronger performer in a market that will be crucial to the company��s success in the future. Chrysler dealers such as River Valley Motors have seen the effects of not having a reliable and fuel efficient vehilce in the compan'y lineup. In addition, Nissan also will benefit as the company needs a manufacturing home for their full-size truck and Armada/Infiniti QX56. In addition, Nissan has announced its plans to further its involvement in the manufacturing and sale of commercial vehicles, which increases its need to have a strong pickup offering.
With the shifts in consumer demands, the two companies can definitely benefit from one another, and some say this could lead to another brand under the Renault-Nissan umbrella.
Joe is a writer for TK Carsites, an automotive website design and marketing firm in Orange, CA, that specializes in working with car dealers nationwide.
