Despite a recent tie-up with Italy’s Fiat, Nissan says it will still supply Chrysler with small cars for the U.S. market. Per a deal inked last year, Nissan will supply Chrysler with a small car based on the Nissan Versa and another based on the Dodge Hornet concept.
Although Chrysler is lacking in the small car department right now, the agreements with Nissan and Fiat could be a case of too much of a good thing. In addition to Nissan’s two small cars, the deal with Fiat will likely give Chrysler two more, making for a rather crowded small car stable.
However, it remains possible that Chrysler could use its Chrysler brand to market a premium small car, much in the same vein as BMW’s MINI brand. Not only would that move give Chrysler a bigger profit margin on its small cars, but would also go a long way in differentiating four separate models.
Chrysler’s Nissan-sourced models are expected to hit the market in 2010, according to Automotive News, with at least one of the company’s Fiat-sourced model on a similar schedule.
