Once again, The Wall Street Journal reports on the latest automotive meta-gossip as fact, citing anonymous sources. "The two companies agreed earlier this year to team up on pickup trucks and subcompact cars. Since then, they have been discussing an agreement under which Nissan would produce midsize sedans that Chrysler would sell in the U.S. under its own name, people familiar with the matter say." This is the K-Martization concept that TTAC floated in the Chrysler Suicide Watch. Although the WSJ is happy to conclude the partnership "could help bring the company back to profitability, even though its vehicle sales are declining," this will never work. As our Deep Throat points out, "It’s way more complicated than it appears. Imagine having different vendors sourcing entire cars… the logistics are impossible. There’s no commonality in interiors, exterior design (no matter how hard Chrysler tries to align the exteriors), the systems (including software), etc. etc. They’re all different among manufacturers. Imagine parts distribution – a nightmare – trying to source all of that and then supplying it. Simple things like part numbers go haywire. Then what about warranty items. Who pays what?" And then there's branding… A full CSW to follow.
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This is not the first time Chrysler has done something like this. I drive a prime example of it, the Dodge Stealth. If you don’t remember, Mitsubishi made the entire car, in Japan. It uses all Mitsubishi-sourced parts from Japanese supppliers. Yes, the Stealth was quite different from everything else Dodge sold, but it worked; Dodge dealers were able to get parts for it and everything.
Robert,
I can appreciate the fact that integration would be difficult, but it’s not impossible.
How much harder could it be given the state of Chrysler’s interior and parts suppliers today?
It is hard to believe that the interior quality of the average Chrysler could go down in such an setup. It’s already about as bad as it gets. Even the mouse fur headliners from Ghosen’s first G35 would be an improvement over today’s stuff.
Could a Chrysler body-clad Altima possible look any worse than the drop top Sebring? That’s hard to fathom.
If Autozone can sell virtually any part for any car, I think they can figure out the logistics for replacement/repair parts. I would not be surprised to see them sell the entire mopar division to Autozone and let them setup shop in the service area. It would have to be an improvement over managing it themselves.
Chrysler’s been integrating with other manufacturers for years, Mitsubishi being the prime example, so they have experience in aligning those processes. What we may see is the first real standardization, company-wide, of things like software, etc.
It will certainly be interesting to watch!
What’s so hard about taking an Altima, changing some sheet metal and some interior pieces, and branding it a Dodge? Car companies do this stuff all the time.
The bigger question to me is why the hell Nissan would have any interest in this. Granted Nissan is struggling pretty well right now as well, but what a way to dilute your brand image….by rebadging your cars as Chryslers.
I wouldn’t touch Chrysler with a 10 foot pole if I were Nissan…..but hey, Ghosn is a genius right (pffft.)
why don’t they just rebrand peugots or renaults or citroens :(
Suzuki sells Daewoos;
GM sold/sells Isuzus, Daewoos, Suzukis, Subarus, Toyotas, Opels, Holdens and Saabs
Ford sold Kias, Mazdas, English Fords (non-metric), German Fords (metric),
Chrysler sold English Hillmans, French Simcas, All sorts of Mitsubishis,
In Japan, many of the majors sell kei-class cars made by Daihatsu and Suzuki.
In Europe, there are many such arrangements between Peugeot, Renault, Fiat, Ford, GM, etc.; especially with light trucks, vans, MPV’s, SUV’s, etc.
I don’t think logistics is the problem; Chrysler clearly sees its main core competency in light/medium trucks/vans/SUV’s. And they seem to recognize that the boat sailed regarding smaller cars. The solution is…their plan. Will it work? Maybe.ee
They should start selling Versas and Sentras at Chrysler dealers immediately.
Aren’t Versas warmed over Renaults already?
I think Chrysler had a significant stake in Mitsubishi when the Dodge Stealth was still around (which was, in essence, a warmed over 3000GT). Chrysler doesn’t have that with Nissan so it would be extremely difficult to integrate parts and such.
And Renault owns Nissan, hence the Versa being a rebadged Renault.
Duh, this is the announcement of the acquisition of Chrysler by Renissan…
Yes, Chrysler had a stake in Mitsu, which made that arranged marriage work. Gee, what if Ren-issan (Nis-ault?) had a stake of, oh I dunno, let’s say 100%, in Chrysler? Pretty good deal.
Ghosn (the Renissan man? sorry couldn’t resist) and company would get US plants and dealers, some good truck stuff, (for when that comes back into fashion), and they would HAVE to get Jeep as part of the deal…
As another poster noted, badging happens all over the industry, anyway. If they can satisfy the truck guys that their stuff is still good ole USA, the people shopping for Chryslers should consider it a BLESSING that it’s all Nissan under the skin!
Like others here, I’m perplexed at the purported obstacles to a cross-company re-body/re-badge. Even mighty Toyota does this. See Matrix/Pontiac Vibe and Aygo/Peugeot 107/Citroën C1.