Rumors have persisted recently concerning the possible purchase of Chrysler by Nissan. Since the Nissan and Chrysler have entered a manufacturing deal earlier, speculation had escalated about more involved between the fairly stable Japanese automaker and the struggling Chrysler. But Nissan CEO Carlos Ghosn has denied these rumors saying that they simply are completely unfounded as product deals are much better in the current economic environment.
Nissan has tried to unsuccessfully create and strengthen partnerships before. One example is earlier this year when Nissan had attempted to build ties with General Motors, as well as Ford. But as Chrysler’s problems deepened, it made sense that Nissan could gain much from a Chrysler partnership.
A Nissan and Chrysler partnership is already going to be mutually beneficial for both automakers. Chrysler will be gaining a Nissan-produced compact car that is much needed considered the increases in the price of gas and general demand among Massachusetts Nissan dealers for smaller cars. In addition, Nissan will be gaining a Chrysler-produced full-size truck based on the Ram pickup, which will be helpful considering the lackluster sales and response to Nissan’s first full-size truck attempt, the Nissan Titan.
Needless to say, it’s not a good time currently for anyone in the auto industry. Sales are down across the board, particularly in North America where spikes in the price of gasoline have caused new car buyers to dramatically change their buying habits and reconsider gas-guzzling trucks and SUVs.
These smaller product deals, according to Nissan, are much more profitable for now, and it’s likely that they don’t stop there. Since the Nissan Titan has been an unsuccessful vehicle, the automaker can save money though the partnership with Chrysler in helping produce the next generation Titan. Despite this, rumors may still persist as Chrysler in particular continues to improve its operations.
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