Chrysler Looks to Team With Nissan on Midsized Cars

US automaker plans to expand outsourcing deals as it searches for profitable course
By Jim O'Neill,  Newser User
Posted Aug 7, 2008 7:41 AM CDT
Nissan Motors CEO Carlos Ghosn.   (AP Photo/Katsumi Kasahara)
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(Newser) – Chrysler is in talks to team up with Nissan to produce midsized cars, the Wall Street Journal reports, following an earlier deal to jointly produce pickup trucks and subcompact cars. The move could represent what the Journal calls a "radical new business model," in which Chrysler becomes a marketer and seller of cars made by others, rather than relying on its own engineering.

The deal could put the struggling automaker on the road to recovery, but it also holds potential potholes. Outsourcing development would save Chrysler billions, but consumers might simply opt to purchase the relabeled vehicles from Nissan dealers instead. The success of this kind of deal "comes down to marketing and branding," an analyst tells the Journal.