Nissan and Chrysler are nearing an agreement where Nissan will supply the American automaker with a version of its Versa subcompact car. The Versa will be rebadged and sold in South America. A source familiar with the talks said that a deal could be announced within the next few days and Nissan could start producing the vehicles in the next 12 to 18 months.
Under the deal, Nissan will supply about 20,000 cars a year and will build the cars in its plant in Mexico. That plant currently produces the 1.8L Nissan Versa for the U.S.
The agreement is said to be smaller than some had originally anticipated. It will only cover one model and will not address any other cooperation between the two companies. Many thought Chrysler will help Nissan strengthen up its pickup line.
“It’s just a one-shot OEM,” said the person familiar with the issue. “But the lines of communication will remain open for the possibility of future talks or exchanges.”
Nissan already supplies Chrysler with continuously variable transmissions.
Source: Automotive News (Subscription Required)
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