• The Wall Street Journal , Thursday, August 7, 2008 10:30 AM

In a move that would signal a dramatic change in the way Chrysler operates, the Detroit automaker is discussing the idea of jointly producing midsize cars with Japanese automaker Nissan. The companies agreed earlier this year to team up on pickup trucks and subcompact cars. Since then, they have been discussing an agreement under which Nissan would produce midsize sedans that Chrysler would sell in the U.S. under its own name, sources say.

For decades, major automakers have taken pride in marketing their vehicles as products of their own engineering. Chrysler plans to continue developing new trucks, sport-utility vehicles and minivans itself, from the ground up. A Chrysler spokesman says the company has "no new alliances" to announce.

A partnership with Nissan would put Chrysler on a path to becoming a marketer and seller of cars made by others. This outsourcing approach has worked for computer makers such as Dell, which relies on key suppliers to develop major components. But sophisticated car buyers might simply buy Nissan's version of the car.

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