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Nissan halts alliance plans with Chrysler

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Before Chrysler was ever involved in alliance talks with Fiat, the Auburn Hills carmaker was already tied with Nissan over several platform swapping and production sharing deals. Both Chrysler and Nissan have now confirmed that two out of the three original product-sharing deals have been put on hold.

The three projects under the original deal were to include the supply of two small Nissan vehicles to Chrysler in 2010. One of the small cars was to be based on the current Nissan Versa, while the other was to be a unique hatch based on Chrysler’s own 2006 Dodge Hornet concept car. Both were expected to be launched next year. In return, Chrysler was to supply Nissan with a full-sized pickup to replace the Titan, also in 2010.

It has now been revealed that the two carmakers have “paused” plans to share the North American-built small car and the full-sized pickup until they can bring down their costs. Earlier this month Nissan announced that it planned to shed up to 20,000 jobs as it copes with a predicted $2.6 billion loss for the year, and this could have very easily caused the latest announcement. Chrysler, meanwhile, is struggling to remain viable as its sales continue to plummet.

A third vehicle-sharing project to give Chrysler a version of Nissan's compact Versa sedan remains on schedule, both companies confirmed to Automotive News. Blame has been centered on the unfavorable economic conditions.
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Comments (6)
  1. im calling it now.. chrysler-fiat-renault-nissan..................................-chery
     
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  2. Might as well throw in Peugeot-Citroen
     
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  3. What's Nissan going to do about a next-generation Titan now?
    Maybe go to GM or Ford?
     
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  4. Nissan has already committed to building commercial trucks at the Titan plant so I predict that Nissan will just drop the Titan. It has never been more than a niche player in the full-size truck market. They keep the Frontier and their unibody SUV's / Crossovers.

    Look at Toyota. They completely redesigned the Tundra, built a dedicated plant in Texas with capacity to build 400K trucks a year, and closed it for 4 months out of the year and run at half capacity the rest. No transplant company has been successful with a full-size truck and Honda and Hyundai have done fine without even trying.
     
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  5. Michael D, they could stop selling it, since it is the worst selling of the light trucks on the market
     
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  6. Oh god, you give some platforms over to chrysler and they'll find some way to tack on an extra thousand pounds and keep the same torqueless 4 banger engine.
     
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