Nissan, Chrysler in talks for car, truck supply

TOKYO: Nissan Motor and Chrysler are in talks to supply each other with vehicles as they seek to expand their market share in North America amid tightening competition, a Japanese daily reported.

The two automakers are negotiating a cost-saving original equipment manufacturing agreement, whereby each firm provides the other with selected products to be resold under its brand, the Nikkei business, it said.

Japan’s third-largest automaker is seeking to tap into Chrysler’s pick-up and minivan lines, while the ailing US firm is interested in Nissan’s subcompacts such as the Versa, the newspaper said without citing sources.

Neither company could be reached for confirmation. The agreement will allow Nissan to boost its line-up of mid to large-size vehicles in the North American market amid slowing sales of its Titan pick-up trucks and Quest minivans, the Nikkei reported.

Chrysler, which was bought earlier this year by US investment fund Cerberus after splitting with Germany’s DaimlerChrysler, is seeking to sell subcompacts which are growing popular due to higher gasoline prices, it added.

Nissan chief Carlos Ghosn has spoken of the need to have a US partner although last year US auto giant General Motors rejected talks on a three-way alliance with Nissan and its French counterpart Renault SA.