News

CHRYSLER & NISSAN Confirm New OEM Product Agreements

15 April 2008

AUBURN HILLS, Mich / TOKYO (April 14, 2008) – Chrysler LLC and Nissan Motor Co., Ltd., today announced two new agreements for the supply of products between both companies. In January, Nissan agreed to supply Chrysler with a new car based on the Nissan Versa sedan for limited distribution in South America on an Original Equipment Manufacture (OEM) basis in 2009.

This new OEM exchange benefits both companies through range extension and the utilization of global manufacturing capacity. Highlights of the new agreement:

Nissan will manufacture an all-new, fuel-efficient small car based on a unique Chrysler concept and design. This new segment entry for Chrysler will be sold in North America, Europe and other global markets in 2010, and manufactured at Nissan’s Oppama Plant in Japan.

Chrysler will manufacture a full-size pickup for Nissan. Based on a Nissan unique design, this truck will be manufactured at Chrysler’s Saltillo (Mexico) Assembly Plant. In order to accommodate this product, Chrysler will shift volume from Mexico to its U.S.-based assembly plants that produce pickup trucks. Sales of the pickup in North America will start in 2011.

This latest OEM supply agreement extends a long standing product exchange relationship between the two corporations, with Nissan affiliate JATCO already supplying Chrysler with transmissions since 2004.

“Forging the right tactical partnerships is critical to the long-term success of Chrysler,” said Tom LaSorda, Chrysler LLC President and Vice Chairman. “It also builds on the Company’s inherent strengths, including the ability to respond rapidly and creatively to emerging opportunities.”

“In January, we said we would continue to look for additional OEM opportunities with Chrysler,” said Carlos Tavares, Executive Vice President, Nissan Motor Company. “This latest agreement builds on Nissan’s proven track record to deliver win-win product exchanges with multiple manufacturers around the world,” continued Tavares.

Since the signing of the first OEM agreement in January, the two companies have also agreed to maintain an open dialogue to explore further product-sharing opportunities.

Panel Predicts Diesels to Hit 20% of U.S. Market by 2020

14 April 2008

About 20 percent of the vehicles sold in the United States could run on diesel fuels by the end of the next decade, a panel of auto executives said on Monday, April 14, at SAE World Congress in Detroit.

The panel also expects hybrid technologies to be in about 10 percent of vehicles by 2020 as consumers\\\' thirst for fuel-sipping products continues, members said.

The figures were suggested by BorgWarner CEO Tim Manganello. Other panelists, including Ford product chief Derrick Kuzak and Ed Mantey, a Toyota engineering vice president, agreed with the forecast.

Manganello based his predictions on patterns in European markets, where consumers have made diesels popular.

\"Europe is a leading indicator for powertrain technology,\" he said.

Meanwhile, Magna co-CEO Don Walker suggested there could be as many as 765,000 hybrids on U.S. roads by 2013, though he expects diesels and other technologies to ultimately win out with consumers.

Source: www.autoweek.com