Chrysler LLC and Nissan Motor Co., Ltd, today announced an agreement for Nissan to supply Chrysler with a new car for limited distribution in South America. Based on the Nissan Versa sedan, the new car will be supplied to Chrysler on an Original Equipment Manufacture (OEM) basis in 2009.

The OEM supply agreement is the second product exchange between the two corporations, with Nissan affiliate JATCO already supplying Chrysler with transmissions since 2004. 

"This kind of tactical partnership allows us to maximise product offerings yet minimise costly investments -- such as new plant infrastructure, tooling and R&D," said Chrysler LLC President and Co-Chairman Tom LaSorda. "This partnership will give Chrysler nearly immediate access to vehicle segments in which we do not currently compete."

“Nissan has a successful track-record of win-win product exchanges and we are pleased to be entering into this second agreement with Chrysler,” said Carlos Tavares, Executive Vice President, Nissan Motor Company.

The two companies have also agreed to maintain an open dialogue to explore further product-sharing opportunities.