Understanding The Chrysler-Nissan Deal

Understanding The Chrysler-Nissan Deal

As a name, Renault-Nissan-Chrysler goes together like chardonnay, sushi, and barbecue. Could such a business tieup be in the works?

Nissan Motor (NSANY) and Chrysler announced a deal Apr. 14 to build key vehicles for each other. Starting in 2010, Chrysler will assemble pickup trucks for Nissan using a unique body style designed by the Japanese automaker. At the same time, a Nissan plant in Japan will assemble a Chrysler compact car for the struggling U.S. company.

The deal immediately shores up two big weaknesses for each carmaker. Nissan's Titan pickup has been a loser since it was launched in 2003. Meanwhile, Chrysler's compact cars have long been distant also-rans behind Japanese cars like the Honda Civic and Toyota Corolla.

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