The partnership between Chrysler and Nissan to build vehicles for each other probably marks the start of a flood of similar pacts in the ailing auto industry, according to industry analysts.

"I think that we will see more of these arrangements," said Jack Nerad, editorial director of Kelley Blue Book. "They benefit both the company and the consumer."

The tremendous expense of developing and manufacturing a car or truck, combined with the need to get new products to the market quickly, is contributing to the growth of partnerships between auto companies. A further motivation is that many car companies have gaps in their product portfolios and lack expertise in those particular market niches.

"Companies have different levels of expertise in different segments," Mr. Nerad said.

That is the case with the Chrysler/Nissan deal. Nissan has had problems trying to break into the truck market (its Titan has not sold particularly well). On the other hand, Chrysler's Dodge Ram has been successful over the years.

Under the agreement, Chrysler will build a full-size pickup truck for Nissan at Chrysler's Saltillo, Mexico, assembly plant. Chrysler, in order to make room for the truck, will shift some of its production of other models to U.S.-based plants. Nissan is expected to start selling the pickup in 2011.

For its part, Chrysler needs to find a way to compete in the exploding entry-level subcompact market now occupied by Honda Fit, Nissan Versa, Toyota Yaris, Chevy Aveo and other similar cars. Rapidly rising gasoline prices have put even more pressure on Chrysler to fill this market niche.

Thus, Nissan will manufacture a fuel-efficient small car for Chrysler based on a Chrysler concept car. It will be built in Japan and go on sale in 2010. The two automakers announced a deal in January in which Nissan would supply a version of its subcompact Versa for Chrysler to sell in South America starting in 2009.

"Forging the right tactical partnerships is critical to the long-term success of Chrysler. It also builds on the company's inherent strengths, including the ability to respond rapidly and creatively to emerging opportunities," said Tom LaSorda, Chrysler LLC president and vice chairman.

Nissan's Executive Vice President Carlos Tavares said the agreement "builds on Nissan's proven track record to deliver win-win product exchanges with multiple manufacturers around the world."

There are challenges, however, to making these agreements work, Mr. Nerad said.

"The brand has to be exemplified in the vehicle. If Nissan's pickup truck, for instance, came out looking too much like a Dodge pickup truck, there could be problems selling it. … You need to make the product look different at least from the products sold by the cooperating company to make this successful."