Japan's Nissan Motor, Chrysler in talks to mutually supply vehicles

TOKYO, Dec. 17, 2007 (Thomson Financial delivered by Newstex) -- Japan's third-largest automaker by sales, Nissan Motor Co (NASDAQ:NSANY) , is negotiating with Chrysler LLC on mutually supplying their vehicles under an original equipment manufacturers' based arrangement, the Nikkei reported at the weekend without citing sources.

The two automakers are currently thrashing out details on price and the types of models that would be produced, the business daily said.

Chrysler is interested in Nissan's subcompacts, such as the Versa, while Nissan seeks to tap the US automaker's collection of pick-up trucks and minivans, it said.

The mutual supply arrangement would be conducted primarily in the North American market, the report said.

Nissan's North American subcompact sales have been brisk, but its Titan pick-up truck and Quest minivan have experienced a slowdown in sales, it said.

By procuring mid- to large-size vehicles from Chrysler, Nissan plans to catch up to rivals Toyota Motor Corp (NYSE:TM) and Honda Motor Co (NYSE:HMC) in the North American market, the Nikkei said.

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