Nissan and Chrysler Share a Mid-Size Car

Nissan and Chrysler have been talking a lot this year.

Last winter, the two companies hatched a plan where Nissan would build a small car for Chrysler that the American automaker would sell in its Latin American market. Later, Chrysler agreed to supply a truck platform that would underpin the next generation Nissan Titan, the Japanese automaker's big truck. The Titan platform will share the same platform as the Dodge Ram, but with a different body.

Most recently, a fresh bit of news regarding Nissan and Chrysler surfaced: the two automakers are now talking about having Nissan build Chrysler's next generation of mid-size sedans at a Nissan-owned factory in Tennessee. Although the talks haven't yielded a concrete agreement, they are suggesting an interesting trend: Nissan and Chrysler are in the process of forging a strategic business alliance.

For Nissan, this move isn't something new as French automaker Peugeot owns a significant portion of its business. Conversely, Nissan also owns a significant chunk of Peugeot, with both automakers run by one individual, Carl Ghosn. Ghosn rescued Nissan from the abyss in the 1990s when that automaker was floundering and in danger of collapsing completely. The relationship between Peugeot and Nissan is historical and has succeeded because of Ghosn's expert guidance.

Chrysler isn't a stranger to forging its own international alliances having had a long relationship with Mitsubishi that began in the 1970s and continued for more than 25 years. In 1998, Chrysler Corporation was purchased by Daimler, but the DaimlerChrysler entity never succeeded before Daimler sold off Chrysler to Cerberus Capital Management in 2007.

Today, Chrysler is suffering billion dollar losses thanks in part to an almost overnight shift in consumer tastes from their mainstay products - large trucks and SUVs - to smaller cars. Unfortunately for Chrysler, the latter category is its weakest link with just one car that can get 30 mpg on the highway. Hooking up with Nissan, who wants to expand their visibility worldwide, makes sense -- a move that will benefit both automakers and bring a better selection of quality vehicles to the market.

As far as Peugeot is concerned, a Nissan-Chrysler alliance could spell "opportunity" for them. Peugeot pulled out of the US market in the 1980s and would like to get back in, a move that might be accomplished if the automaker crafts its own alliance with Chrysler.

Copyright 2008-2012 -- Matthew C. Keegan is the owner of a successful writing and marketing business based in North Carolina, USA. He manages several websites and is a contributing writer for Andy's Auto Sport, a retailer of quality Lamdo doors and ground effects products.

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