Nissan to Build Chrysler’s Next Subcompact in Japan
Chrysler’s new global small car will be built by Nissan at the Oppama plant for North America and Europe, replacing earlier plans with Chery.
Chrysler and Nissan have agreed a manufacturing deal that will see Nissan produce Chrysler’s next global subcompact at its Oppama plant in Japan, with sales set for North America, Europe and other markets from 2010. The arrangement replaces Chrysler’s troubled project with China’s Chery for the same segment.
Why Nissan, not Chery, got the contract
Chrysler’s original plan had been to source its small car from Chery in China. However, the project ran into delays and failed to meet North American and European crash and emissions standards. As a result, the first Chery-built Chrysler will be limited to the Chinese market. Chrysler has continued to invest in its Chinese operations, but the global subcompact project shifted to Nissan’s more established manufacturing base.
Nissan’s Oppama plant, which already builds the Cube, March, Tiida and other small cars, will handle production. Chrysler’s president Tom LaSorda said the new model will be a Chrysler design, not a rebadged Nissan, but it is expected to use the next-generation March (Micra) platform. The March had been due for a platform update, making it a logical base for Chrysler’s new entry.
A two-way deal: Chrysler to build Nissan pickups
The agreement is reciprocal. Chrysler will manufacture a full-size pickup for Nissan at its Saltillo, Mexico plant, starting in 2011. This will be the next-generation Nissan Titan, adapted from the Dodge Ram platform but with changes for Nissan’s requirements. The arrangement allows Nissan to enter the medium-duty truck market in North America while giving Chrysler a new small car for global markets.
- Nissan’s Oppama plant builds the Cube, March, Tiida, Note and Bluebird Sylphy.
- Chrysler’s Saltillo plant in Mexico will build Nissan’s next Titan pickup.
- Chrysler’s first Chery-built car will be for the Chinese market only.
Implications for plants and jobs
Chrysler will shift some production from Mexico to US plants to make space for the Nissan truck. This move comes as exchange rates have made Mexican production less cost-effective. For Nissan, the deal means its US Canton plant will lose Quest and Infiniti QX56 production as commercial trucks take priority, with no immediate replacement for those models.
The collaboration is part of a series of joint ventures between Chrysler and Nissan, including earlier plans for rebadged Nissan Tiida/Versa models for South America. The companies say there are no plans for an equity tie-up, but they expect further cooperation.
