Andrews Chalmers wrote:No offense... but I don't find the article confusing, it just requires careful reading...
After the market closed on Monday, Chrysler announced it would make a full-size pickup truck designed by Nissan Motor (nasdaq: NSANY - news - people ), while Nissan will make a new fuel-efficient small car designed by Chrysler.
Chrysler will build a full-sized pickup designed by Nissan. Nissan will build a new small vehicle designed by Chrysler.
In January, the two companies said they were cooperating on producing fuel-efficient small vehicles. In the deal, Nissan would supply Chrysler with small car models with engine displacement of around 1.8 liters.
The seemingly contradictory statement was made in January. It is now April. Different announcements - not confusing at all.
According to the deal announced Monday, both products will be sold in North America, and the new Chrysler small car will also be sold in Europe and other global markets starting in 2010. No financial details were disclosed.
Deal announced Monday refers to the April announcement.
Good for you. I read the article carefully, but I'm still confused. Why mention the January deal at all if they are unrelated.
Is the new announcement that each will be using their manufacturing capacity to produce cars & trucks for each other?
I really don't see any upside in Dodge selling Nissan designed trucks as Dodge's. But I can see them using plant capacity to make trucks for Nissan. Cerberus was already doing this in Europe for several car companies before they bought Chrysler.
Also if Nissan was going to supply small cars to Chrysler in January, why would they now make Chrysler designed small cars. Just like no upside for Dodge selling Nissan designed trucks as Dodge's, I see no upside in Nissan selling Dodge designed small cars as Nissans. But it makes sense that they would use excess plant capacity to manufacure cars for Chrysler.