Nissan to supply Chrysler with small cars

TRAVERSE CITY, Mich., Aug. 13 (UPI) -- Chrysler LLC said it would invest $1.8 billion in a Michigan plant and work with Nissan to supply small cars to North and South America.

Overhauling its Jefferson North Assembly Plant to produce a new car-based sport utility vehicle would keep 400 jobs at the factory, the Detroit News reported Wednesday.

Chrysler also said Nissan will supply it with two small cars, a version of the Versa to be sold in South America, and another small car that would be sold in North America.

In turn, Chrysler, which is also building a minivan for Volkswagen, will supply Nissan with a small pickup, the newspaper reported.

"In the next five to 10 years, I see more consolidation in every region of the world … especially among suppliers," said Tom LaSorda, Chrysler's vice chairman and president.

LaSorda also said Chrysler had identified $1 billion in assets that it could sell and was "more than halfway to achieving that goal," the Detroit Free Press reported.

"One advantage of private ownership is that we can sell non-earning assets to generate cash," LaSorda said.