CAFE casualty: Nissan to outsource Titan

[Mike202]

From: http://www.autonews.com/apps/pbcs.dl...998465452/1054

Automotive News | April 14, 2008 - 7:26 pm EST

Looming regulatory changes on pickup truck fuel efficiency and emissions will cause Nissan North America Inc. to throw in the towel on manufacturing its full-sized Titans in 2011.

Nissan -- the first Japanese automaker to attempt full-sized American pickups -- has determined that it no longer makes sense to build its own. In an agreement announced late Monday, the company said it will source the next-generation Titan from Chrysler's Saltillo, Mexico, truck plant, using a design created by Nissan. At the same time, Chrysler will receive a new small-car for the U.S. market built by Nissan in Japan.

The upcoming regulatory changes will require pickup producers to meet a more stringent corporate average fuel economy standard, based on the size and weight of the vehicle, starting in model year 2011. That is something that would be expensive for Nissan, which sells just 60,000 Titans a year.
"We could not have continued to make the Titan," Dominique Thormann, Nissan's senior vice president for administration, said in a phone call to reporters today.

Thormann was upbeat about the truck it will obtain from Chrysler, insisting that it will be a "Nissan-unique" vehicle, with Nissan performance characteristics. "We're not giving up on the Titan," he said.

Overtaken
But the new CAFE regulations in the face of a shrinking U.S. truck market have clearly thwarted Nissan's ambitious plans. Nissan spent nearly a billion dollars to open a radical new assembly plant in Canton, Miss., to enter the full-sized truck market in 2003 with hopes of selling 100,000 or more Titans annually.

At that time, the U.S. market was selling 2.5 million trucks a year. Today, Thormann noted, the market is 2.1 million.

He said that Nissan's small market share has made it difficult to consider different configurations of the truck to remain competitive. Currently, the Titan comes with only one engine, a 5.6-liter V8, and is only available in two body styles -- a king cab and a crew cab.

New plans
Nissan's strategy for American truck-making is rapidly evolving. The company said last week that it would discontinue building the Quest minivan and Infiniti QX56 in Canton, and begin building light commercial vehicles there instead.
Thormann said that Canton's two other products -- the Titan-based Armada SUV and the Altima sedan -- will not be affected by the decision to outsource the Titan.

[agtitan06]

Well I can say I've owned my first and last titan...........

[Mike202]

Here is an earlier discussion on topic.
Nissan becoming dodge?????????????

[nismo4x4055]

this really upsets me that nissan is pretty much giving up on the titan... my next truck will be a fullsize, and it was going to be a titan. Now i guess i will have to look at toyota, chevy or ford when im ready for my next one.

[agtitan06]

News was suposed to be released to the public announcing the next Titan (2011 model year). Seems it will be built by Dodge in Mexico. Don't get upset. It will be a Nissan design, not common with the Dodge. But I don't know to what extent. They did mention engine options, but no specifics. Canton will not make the Titan after that as of right now.
One of my coworkers worked at the Dodge truck plant in St. Louis and said Mexico trucks had better ratings than the truck built in St. Louis.
Not a part of the info release: The Mexico plant builds only 3/4 ton trucks for Dodge. Maybe we will finally get a 3/4 ton HD with a diesel.
Let the speculation begin.
http://nissannews.com/newsrelease.do;jsessionid=7C32DA03DFB80B876481D10C AD3ABAA2?mid=1&id=401
And from another source I cannot devulge....

Quote:
The VK56 will still be offered. As well as a Cummins 6 or 8 cylinder option with an Allison tranny. Canton will no longer build the Titan but will build the new commercial trucks....

04.14.2008 , AUBURN HILLS, Mich / TOKYO

CHRYSLER AND NISSAN CONFIRM NEW OEM PRODUCT AGREEMENTS

(April 14, 200 – Chrysler LLC and Nissan Motor Co., Ltd., today announced two new agreements for the supply of products between both companies. In January, Nissan agreed to supply Chrysler with a new car based on the Nissan Versa sedan for limited distribution in South America on an Original Equipment Manufacture (OEM) basis in 2009.

This new OEM exchange benefits both companies through range extension and the utilization of global manufacturing capacity. Highlights of the new agreement:

Nissan will manufacture an all-new, fuel-efficient small car based on a unique Chrysler concept and design. This new segment entry for Chrysler will be sold in North America, Europe and other global markets in 2010, and manufactured at Nissan’s Oppama Plant in Japan.

Chrysler will manufacture a full-size pickup for Nissan. Based on a Nissan unique design, this truck will be manufactured at Chrysler’s Saltillo (Mexico) Assembly Plant. In order to accommodate this product, Chrysler will shift volume from Mexico to its U.S.-based assembly plants that produce pickup trucks. Sales of the pickup in North America will start in 2011.

This latest OEM supply agreement extends a long standing product exchange relationship between the two corporations, with Nissan affiliate JATCO already supplying Chrysler with transmissions since 2004.

“Forging the right tactical partnerships is critical to the long-term success of Chrysler,” said Tom LaSorda, Chrysler LLC President and Vice Chairman. “It also builds on the Company’s inherent strengths, including the ability to respond rapidly and creatively to emerging opportunities.”

“In January, we said we would continue to look for additional OEM opportunities with Chrysler,” said Carlos Tavares, Executive Vice President, Nissan Motor Company. “This latest agreement builds on Nissan’s proven track record to deliver win-win product exchanges with multiple manufacturers around the world,” continued Tavares.
Since the signing of the first OEM in January, the two companies have also agreed to maintain an open dialogue to explore further product-sharing opportunities.

Chrysler LLC, headquartered in Auburn Hills, Mich., produces Chrysler, Jeep®, Dodge and Mopar® brand vehicles and products. Its product lineup features some of the world's most recognizable vehicles, including the Chrysler 300, Jeep Wrangler and Dodge Charger. The Chrysler Foundation - the primary source of charitable grants made by Chrysler - annually supports hundreds of charitable organizations with an emphasis on community growth and enrichment, education, arts and culture, public policy, youth development and disaster relief programs throughout the United States and, increasingly, the world. Chrysler is a unit of Cerberus Capital Management.


Nissan Motor Company generated global net revenues of 10.468 trillion yen in 2006. Nissan is present in all major global auto markets selling a comprehensive range of cars, pickup trucks, SUVs and light commercial vehicles under the Nissan and Infiniti brands. Nissan employs 224,000 people worldwide.

Under the Nissan Value-Up business plan, the company continues to focus on long-term sustainable and profitable growth driven by three commitments:
- To maintain top level of operating profit margin among global automakers
- To achieve global sales of 4.2 million units in 2009
- 20% return on invested capital on average over the course of the plan

[Clint]

If Nissan builds anything I was interested in, outside the USA, especially in mexico I will buy a different brand.

[Mike202]

The VK56 will still be offered.

Where does the article state this?

When Nissan says "Based on a Nissan unique design" this is translated as "it will be rebadged Dodge Ram with Nissan-tweaked sheet metal and interior"

Think:

Dodge Dakota <> Mitsu Raider
Chevy Colorado <> Isuzu I Series
Ford Ranger <> Mazda B Series
Chevy Trailblazer <> Saab 97X
Toyota Matrix <> Pontiac Vibe
Izusu Rodeo <> Honda Passport
Nissan Frontier <> Suzuki Equator

[Inyourface1650]

Originally Posted by Clint

If Nissan builds anything I was interested in, outside the USA, especially in mexico I will buy a different brand.

Most domestics are build outside of the US (In canada and mexico) so I don't see how that would be factor.

[PoolRunner]

This is not good news as far as I'm concerned. I was a die-hard Toyota man, I just got into a new '08 Frontier which has become my favorite truck I've owned yet and I've been in all of them Ford, GM, Yota, etc... The worst truck I've ever had was my '05 Dodge 2500 w/ Cummins Diesel, the motor was bullet proof but the suspension, bushings and everything else around the Cummins didn't last or held up well. They can butcher up a Titan by turning into a Ram, but with my experience with Dodge, if the next Frontier is based off a Dakota my business will unfortunately go back to Toyota, and I buy trucks often, almost every two years.

-Ryan

[Clint]

Originally Posted by Inyourface1650

Most domestics are build outside of the US (In canada and mexico) so I don't see how that would be factor.

If the ugly as garbage, fake truck, ridgeline is built here I'd buy that then.
This is assuming the Frontier was no longer made here. America is destroying itself by outsourcing things to save money. If we don't build it here all the money goes to pay salaries outside the USA and they spend it THERE.
When I call American Express I don't want to discuss my finances with someone in india, I demand domestic customer service and get switched to the states. At the rate we are going we may see another depression in our lives. My father (87 years old) always repeats the words "those who forget history are doomed to repeat it".
I believe he has lived through the best times this country has had, or ever will have. Think about this. What are we leaving to, and doing to our children and their future?