Chrysler LLC and Nissan Motor Co., Ltd., announced two new agreements for the supply of products between both companies. In January, Nissan agreed to supply Chrysler with a new car based on the Nissan Versa sedan for limited distribution in South America on an Original Equipment Manufacture (OEM) basis in 2009.
This new OEM exchange benefits both companies through range extension and the utilization of global manufacturing capacity. Highlights of the new agreement:

Nissan will manufacture an all-new, fuel-efficient small car based on a unique Chrysler concept and design. This new segment entry for Chrysler will be sold in North America, Europe and other global markets in 2010, and manufactured at Nissan’s Oppama Plant in Japan.

Chrysler will manufacture a full-size pickup for Nissan. Based on a Nissan unique design, this truck will be manufactured at Chrysler’s Saltillo (Mexico) Assembly Plant. In order to accommodate this product, Chrysler will shift volume from Mexico to its U.S.-based assembly plants that produce pickup trucks. Sales of the pickup in North America will start in 2011.

This latest OEM supply agreement extends a long standing product exchange relationship between the two corporations, with Nissan affiliate JATCO already supplying Chrysler with transmissions since 2004.

“Forging the right tactical partnerships is critical to the long-term success of Chrysler,” said Tom LaSorda, Chrysler LLC President and Vice Chairman. “It also builds on the Company’s inherent strengths, including the ability to respond rapidly and creatively to emerging opportunities.”

“In January, we said we would continue to look for additional OEM opportunities with Chrysler,” said Carlos Tavares, Executive Vice President, Nissan Motor Company. “This latest agreement builds on Nissan’s proven track record to deliver win-win product exchanges with multiple manufacturers around the world,” continued Tavares.
Since the signing of the first OEM in January, 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 224,000 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

About Original Equipment Manufacturer
Original equipment manufacturer, or OEM, is an ambiguous and abstruse phrase that refers to containment-based re-branding, where a company uses a component of another company in its product, or sells the product of another company under its own brand. OEM refers to the company that originally manufactured the product.

OEM is a term that may have been coined in the 1950s by IBM to refer to a vendor that purchased and resold IBM computers, also soon after in the early 1960s by Digital Equipment Corporation and its vendors. OEM refers to the manufacturer of a component of, or subassembly used in, the production of a larger item.

OEMs are the industry's brand name auto manufacturers, such as General Motors, Ford, Toyota, etc. The OEM definition in the automobile industry constitutes a federally-licensed entity required to warrant and/or guarantee their products, unlike "aftermarket" which is not legally bound to a government-dictated level of liability.

OEMs also apply to component manufacturers, such as Bosch, BBS, NGK, Pagid, Ferodo, etc. Identical products, such as spark plugs, may be supplied though official franchised dealers in appropriately branded packaging (Volkswagen, General Motors, etc). The same product may be supplied through general auto retail outlets (in the UK - Halfords, A1 Motor Stores, etc), or 'trade' motor factors (UK - Euro Car Parts, APD) in the manufacturer's original branded packaging.

About Nissan Motor Company
Nissan Motor Company, Limited shortened to Nissan is a multinational automaker headquartered in Japan. It formerly marketed vehicles under the "Datsun" brand name and is one of the largest car manufacturers. The company's main offices are located in the Ginza area of Chūō, Tokyo with disassembling by 2013, but Nissan plans to move its headquarters to Yokohama, Kanagawa by 2010, with construction starting in 2007. In 1999, Nissan entered an alliance with Renault S.A. of France. Nissan is among the top three Asian rivals of the "big three" in the U.S. Currently they are the third largest Japanese car manufacturer. It operates the Infiniti brand.

The Nissan VQ engines, of V6 configuration, have featured among Ward's 10 Best Engines for 12 straight years, since the award's inception. For the truck and bus maker "Nissan Diesel," it is a separate company from Nissan Motors, please see UD instead.

About Chrysler LLC
Chrysler LLC is an American automobile manufacturer that has been producing automobiles since 1925 and from 1914 under the Dodge name. From 1998 to 2007, Chrysler and its subsidiaries were part of the German based DaimlerChrysler (now Daimler AG). Prior to 1998, Chrysler Corporation traded under the "C" symbol on the NYSE. Under DaimlerChrysler, the company was named "DaimlerChrysler Motors Company LLC", with its U.S. operations generally referred to as the "Chrysler Group".

On May 14, 2007 DaimlerChrysler AG announced the sale of 80.1% of Chrysler Group to American private equity firm Cerberus Capital Management, L.P., although Daimler continues to hold a 19.9% stake. It is then that the company gained its current name. The deal was finalized on August 3, 2007.

On August 6, 2007, after the announcement of the spin-off to Cerberus, the Chrysler LLC, or "The New Chrysler", unveiled a new company logo and launched its new website with a variation of the previously used Pentastar logo. Robert Nardelli also became Chairman and CEO of Chrysler under the ownership of Cerberus. Chrysler is now the largest private automaker in North America.

Recommend this news <none> 1=poor2=cool3=good4=better5=excellent

Latest comments

Add comment

Full Name *
Email address *
Location
Your Comments *