Nissan Europe Press

[Debra Necochea]

ToEuro or Not to Euro:

Nissan Picks UK Site

for $300 Million Expansion

By JACK LYNE • Site Selection Executive Editor of Interactive Publishing

SUNDERLAND, ENGLAND -- To be on the continent or not to be on the continent?That was the question for Nissan Motors (www.nissan-europe.com) in locating its operation to manufacture a new Micra model for the European market.

The answer surprised some: not on the continent. Picking between UK and French sites, Nissan last week chose to make its US$300 million investment at its existing operation in Sunderland, England.

Located on England's northeast coast (www.onenortheast.co.uk), Nissan's Sunderland operation won out over Renault's existing factory in Flins, outside Paris. Renault bought a controlling interest in Nissan in the spring of 1999, creating the world's fourth-largest automaker. The Sunderland-built Micra will be the first auto manufactured around a common Renault-Nissan platform.

"As you know, Sunderland is the leading European car plant in terms of productivity, and has been in that position for many years," Nissan CEO Carlos Ghosn said in announcing the decision.The expansion will make Sunderland Europe's largest auto plant, with annual output rising from 330,000 to 500,000 vehicles a year. ABOVE: The next-generation Micra built at Sunderland will be the first auto manufactured around a common Renault-Nissan platform. By 2010, company officials plan to cut Nissan's current 24 platforms (including the 2000 Micra pictured) to only 10. Exchange Rates Spurred Ghosn Warning

ABOVE RIGHT: The UK's $40 million grant "swayed the balance, particularly in the short term,"

said Nissan Chief Ghosn, known in French auto circles as "le cost-cutter."

BELOW: Nissan's decision "is a tremendous tribute to Sunderland's management and work force," said Blair. $58.5 Million Grant 'in Record Time'

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