UPDATE: Nissan and Chrysler LLC Nearing Deal

Nissan Motor Company and Chrysler LLC are reportedly in final negotiations over a deal that would have Nissan supplying Chrysler’s North American market with a 1.8L fuel-efficient, compact car.

You may remember a year or so back, Nissan and its French partner Renault were in talks with General Motors over a similar deal – which inevitably went sour. However, this deal in its final stages seems to make more sense; as Nissan would benefit from a larger share of the North American market and Chrysler, well, they need something to pull them out of the gutter.

Reuters also reports that the joint-effort may involve the sharing of other car and truck platforms. The source was told by Nissan-Renault Chief Executive Carlos Ghosn that the discussions with Chrysler involve a product-by-product deal.

Can this colossal deal save the struggling Chrysler? Let us know in comments.

+ Reuters: Nissan set to supply Chrysler with small cars

UPDATE: The deal between Nissan and Chrysler LLC has been reached. Although we thought the deal was going to bring a compact car to North America, it turns out Nissan will be supplying Chrysler a version of the Versa for the South American market.

While no other platforms have been shared, the press release states that the two companies will maintain an open dialogue.

PRESS RELEASE:

Chrysler and Nissan Confirm OEM Product Agreement

Auburn Hills, Mich., Jan 11, 2008 - Chrysler LLC and Nissan Motor Co., Ltd., today announced an agreement for Nissan to supply Chrysler with a new car for limited distribution in South America. Based on the Nissan Versa sedan, the new car will be supplied to Chrysler on an Original Equipment Manufacture (OEM) basis in 2009.
The OEM supply agreement is the second product exchange between the two corporations, with Nissan affiliate JATCO already supplying Chrysler with transmissions since 2004.

“This kind of tactical partnership allows us to maximize product offerings yet minimize costly investments, such as new plant infrastructure, tooling and R&D,” said Chrysler LLC President and Vice Chairman Tom LaSorda. “This partnership will give Chrysler nearly immediate access to vehicle segments in which we do not currently compete.”

“Nissan has a successful track-record of win-win product exchanges and we are pleased to be entering into this second agreement with Chrysler,” said Carlos Tavares, Executive Vice President, Nissan Motor Company.

The two companies have also agreed to maintain an open dialogue to explore further product-sharing opportunities.

Chrysler LLC, headquartered in Auburn Hills, Mich., produces Chrysler, Jeep®, Dodge and Mopar® brand vehicles and products. Its product lineup features some of the world’s most recognizable vehicles, including the Chrysler 300, Jeep Wrangler and Dodge Charger. The Chrysler Foundation - the primary source of charitable grants made by Chrysler - annually supports hundreds of charitable organizations with an emphasis on community growth and enrichment, education, arts and culture, public policy, youth development and disaster relief programs throughout the United States and, increasingly, the world. Chrysler is a unit of Cerberus Capital Management.

Nissan Motor Company generated global net revenues of 10.468 trillion yen in 2006. Nissan is present in all major global auto markets selling a comprehensive range of cars, pickup trucks, SUVs and light commercial vehicles under the Nissan and Infiniti brands. Nissan employs over 180,000 people worldwide.

Under the Nissan Value-Up business plan, the company continues to focus on long-term sustainable and profitable growth driven by three commitments:

- To maintain top level of operating profit margin among global automakers

- To achieve global sales of 4.2 million units in 2009

- 20% return on invested capital on average over the course of the plan