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Nissan mulls factory in US

Tokyo, Aug. 25 (Reuters): Nissan Motor Co is considering building a factory in North America in 2008-09 or later, Japanese business daily Nihon Keizai reported on Friday, citing an interview with the automaker’s co-chairman Itaru Koeda.

Koeda told the paper that Nissan, Japan’s second-biggest auto maker, had not decided if it would set up a plant in the United States or Mexico.

Nissan’s global unit sales are hurting with just one new model being offered globally in the April-September first half, but it plans to roll out eight fresh models in the latter half of the business year.

Nissan will launch three remodelled cars in the US market, where it makes more than half its profits.

Chief executive Carlos Ghosn said in July the company needs to add more plants in North America and could possibly use some of the excess production capacity that General Motors Corp is planning to shed.

Nissan spokeswoman Mihoko Takeda repeated that the company would need to boost output capacity, either by building a plant or taking over some of GM’s excess production capacity, as it plans to continue introducing new models from the business year starting April 2008.

But she said no details have been decided, including the timing to strengthen capacity.

Nissan, owned 44 per cent by Renault, has been talking to GM about a possible three-way alliance, discussing nearly 10 topics such as pooling purchasing of parts and sharing vehicle platforms.

Separately, Koeda told the Yomiuri newspaper that Nissan would not likely sell its vehicles through GM’s sales network or supply cars under an original equipment manufacturing (OEM) deal because “that would hurt both brands.”

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