Chrysler, Nissan Terminate Vehicle Agreement

Automakers have ended an agreement to build vehicles for each other, saying deal no longer made sense after Chrysler emerged from bankruptcy under Fiat's control.

AUBURN HILLS, Mich. (AP) -- Chrysler Group LLC and Nissan Motor Co. say they have ended an agreement to build vehicles for each other.

Under deals brokered early last year, Nissan was to make compact cars for Chrysler to distribute in South America this year and globally next year, while Chrysler was to manufacture a full-size pickup truck for Nissan based on the Dodge Ram starting in 2011.

But when Chrysler emerged from bankruptcy protection this year under control of Italy's Fiat Group SpA, the deal with Nissan no longer made sense. At the time of the Nissan deal, Chrysler was desperate for a high-quality small car, something that Fiat specializes in.

The companies announced the decision in a joint statement issued Tuesday.

More in Global