Wanted: Auto Plant

Nissan Motor Co. Ltd. appears destined to add capacity in North America and will consider all options — including acquiring an unwanted plant from Detroit's auto makers, CEO Carlos Ghosn says.

Meeting with reporters following a recent speech to the Detroit Economic Club, Ghosn says Nissan reviews its North American product plans, sales outlook and capacity position every three months, and the direction remains unchanged.

“When we look at all the products we're going to bring to the U.S. (and) our interpretation of what the U.S. market is going to do over the next five years, our sales forecast is higher than our capacity,” he says. “So, at some point in time, we're going to have to make a decision.”

Nissan could expand its existing U.S. plants in Smyrna, TN, and Canton, MS; source more from Mexico; acquire an existing plant; link up with an auto maker in a joint venture; or contract for production from another manufacturer, Ghosn says.

“We always look at the best way to expand capacity,” he says when pressed on whether Nissan might acquire one of the plants slated for closure by General Motors Corp. or Ford Motor Co. “If there is some capacity available (from another auto maker) that can be used in a win-win situation, we will do it.”

“There's nothing revolutionary about that,” Ghosn adds.