Top car makers in manufacturing agreement

Two major auto makers, Chrysler and Nissan, have announced an agreement for the supply of new vehicles to each other.

Nissan will make 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 pick-up for Nissan. Based on a Nissan unique design, the truck will be manufactured at Chrysler's Saltillo plant in Mexico.

To accommodate this product, Chrysler will shift volume from Mexico to its US-based assembly plants that produce pick-ups. Sales of the pickup in North America will start in 2011.

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

Image: Nissan's contribution to the agreement with Chrysler will be its expertise in producing small cars, such as the Micra

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