Chrysler, Nissan put off joint project

Chrysler LLC has announced that its work with Nissan Motor Co on the development of the Dodge Hornet and Nissan Titan pickup truck have been put on hold till they can reduce costs, as the two companies evaluate their financial futures.

"Due to the current economic conditions, Nissan and Chrysler leadership directed their teams working on the two projects to work together in the first quarter of 2009 to improve the financial objectives for both companies before the projects move further forward," Chrysler spokesman Dave Elshoff said in a written statement late on Thursday.

Chrysler announced in April that Nissan would build a fuel-efficient small car that Chrysler would then sell in North America and Europe under the Dodge Hornet name. In return, Chrysler would build Nissan a full-size pickup truck based on Nissan's design at its Saltillo, Mexico, assembly plant.

A third project, in which Nissan agreed to supply Chrysler with a new car based on the Nissan Versa sedan for limited distribution in South America in 2009, has not been cancelled. Press didn't provide further details in his keynote address at the Chicago Auto Show.

"Because of current economic conditions, Nissan and Chrysler teams working on the two other projects have been asked to ensure that financial objectives for both companies can be met before these two projects move forward," said a statement distributed by Nissan North America Inc.

Nissan, Japan's No 3 automaker, said earlier this that week it would revise its product portfolio, including the cancellation of selected future programmes, after its first annual operating loss in 14 years.