P.M. BRIEFING : Chrysler, Renault Abandon Joint Venture for Sport-Utility Vehicle

Chrysler Corp. and the French auto maker Renault announced today that they have abandoned their joint venture in developing and building a new sport-utility vehicle.

The ARCAD joint venture, formed in February, 1989, “is no longer economically attractive,” the auto makers said in a written statement. Chrysler spokesman Tom Houston declined to elaborate.

ARCAD was to begin producing a vehicle code-named “JJ” in the second half of 1992 at a Valladolid, Spain, plant leased from Renault’s Spanish subsidiary. The four-wheel-drive vehicles were to be marketed worldwide except in North America, where ARCAD planned to build them at an existing Chrysler facility.

Chrysler intends to develop the JJ project on its own, but a North American plant still has not been selected, Houston said.

Renault will continue distributing Chrysler’s Jeep vehicles in Europe, the statement said.