(Adds quotes, outlook for regions, other details)
By Chang-Ran Kim
TOKYO, Jan 23 (Reuters) - Japan's fourth-largest automaker, Mitsubishi Motors Corp , said on Thursday it would make a decision on the location of a new factory in North America within the next few weeks.
Mitsubishi has said it was considering expanding production in North America to boost sales in the region. It can produce a maximum 270,000 vehicles there now.
President Rolf Eckrodt told a news conference on Thursday that the automaker aimed to sell 400,000 units in the region this year, up 11 percent from last year. Mitsubishi began selling cars in the Canadian market last September and Mexico this month.
"We are evaluating where we want to place the additional capacity. The location of the factory is under discussion now," he said, adding that it could be in Canada, Mexico or the United States.
"We are looking at various opportunities and in the next few weeks we will have a decision."
Eckrodt added that cooperating with partner DaimlerChrysler AG's Chrysler arm would be one option that could reduce the amount of necessary investment.
Asked how Mitsubishi intended to fund the increase in output capacity, Eckrodt said the automaker had been working to improve its financial standing through "active and offensive asset management" such as the sale of shares in Hyundai Motor Co of South Korea and a spin-off of its truck business this month.
"We are not talking about any kind of capital increase," he said.
Regarding a new engine plant to be operated by DaimlerChrysler, Hyundai and Mitsubishi in the United States, Mitsubishi executives said it would probably be located in Michigan, Ohio or Illinois.
CHINA STRONG, JAPAN LAGS
Touching on Mitsubishi's sales performance around the globe in 2002 and the outlook for this year, Eckrodt said he expected continued success in Asia, particularly in China.
"We are a strong player in China, but we need to and will do more," he said.
Mitsubishi aimed to sell 100,000 vehicles in China in fiscal 2003, which begins in April, compared with an estimated 70,000 units in 2002, he said.
Mitsubishi is due to launch its entry-level Outlander sport-utility vehicle there in fiscal 2003 to complement the high-end Pajero models, which went on sale last month. The automaker has said it hopes to grab half of China's SUV market by 2010.
In contrast to the rosy performance in the rest of Asia, Eckrodt said he expected the Japanese market to stay difficult, even though its new compact model "Colt" was doing well in lifting sales volume so far.
"The domestic market remains a battlefield, and we have to work hard," he said.
Among other model launches, Mitsubishi will begin selling in May a new minivan called "Grandis", although its introduction lags rival models such as Toyota Motor Corp's "Wish" and Honda Motor Co's "Stream".
Senior Vice President Eiji Iwakuni, who oversees domestic sales and marketing, told reporters he was looking at sales of 400,000 units in Japan this year, up slightly from around 370,000 to 380,000 expected for calendar 2002.
Shares in Mitsubishi Motors ended down 1.37 percent at 289 yen, against a two percent rise in the benchmark Nikkei 225 share average .