Chrysler President Press Says Work On Nissan JV Continues
12 Februar 2009 - 9:17PM
Dow Jones News
Chrysler LLC President and Vice Chairman Jim Press said Thursday
that the U.S. auto maker is still working on its partnership with
Nissan Motor Co. (NSANY).
The remarks during an address at the Chicago Auto Show follow a
report that the joint venture had been shelved.
Press didn't provide further details in his speech.
Kyodo news service said Nissan had suspended preparatory work
for the Chrysler tie-up, citing sources close to the deal.
The two auto makers had unveiled a production alliance last
April under which Nissan would build a small car, the Dodge Hornet,
for Chrysler to distribute from 2010. Chrysler would also build a
full-size pickup truck under the Nissan badge from 2011.
Nissan, Japan's No. 3 auto maker, said earlier this week it will
revise its product portfolio, including the cancellation of
selected future programs after its first annual operating loss in
14 years.
Press also cautioned that the industry should not expect a
rebound to historic sales levels when the economy rebounds.
"We need to accept and come to grips that sales could stay at
this 10 million level for four more years," he said in reference to
U.S. light-vehicle sales, which fell to 13.2 million last year from
a recent average of 16 million.
Chrysler and General Motor Corp. (GM) executives are racing to
pull together the final pieces of their viability plans that must
be submitted to the U.S. Department of Treasury on Tuesday.
The auto makers were required to submit a plan if they wanted to
access more low-interest loans to keep their operations running
during one of the worst sales downturns in 25 years. Chrysler has
received $4 billion, and GM took $9.4 billion.
-By Jeff Bennett, Dow Jones Newswires; 248-204-5532;
jeff.bennett@dowjones.com