Chrysler's decision leaves Nissan with no Titan pickup replacement

(August 27, 2009) Chrysler's decision announced on Wednesday to terminate plans to share vehicles with Nissan Motor Co. leaves Nissan with no replacement for its aging Titan full-sized pickup.

Chrysler was going to built the next-generation Titan using its new-for-2009 Dodge Ram as the basis for the truck. This was definitely a good deal for Nissan who now is left no truck replacement just 18 months for the expected launch of the new Dodge-sourced Titan.

The Chrysler-based pickup was to reach Nissan showrooms by 2011. Now Nissan dealers won’t have a new pickup truck to sell.

Developing an all-new vehicle, especially a commercial-grade truck, is daunting and even just updating the existing Titan, entering its seventh model year in 2010, would take several years. Therefore, Nissan will continue building the old truck a bit longer — at least through the 2011 model year at its Canton, Miss., plant.

Nissan says it will stay committed to the full-sized pickup market even though the current Titan is selling barely 100 units a month. But Nissan must scramble to find a different manufacturing partner to produce the next Titan or create the truck's next generation on a very abbreviated schedule.

The canceled vehicle plans between the two companies also means Nissan will not supply Chrysler dealers with a small car for global markets starting next year, and Nissan will not provide Chrysler with a Nissan Versa-based sedan to sell in South America.

The announcement comes on the heels of press speculation that Chrysler's new 20 percent owner, Fiat, soon will begin putting a version of its compact Fiat 500 into production in North America for Chrysler Group dealers. That would bolster Chrysler's lineup in a market that has shifted from large vehicles, where Chrysler has excelled in the past, to more fuel-efficient small cars, where the automaker has been weak.