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INTERVIEW-UPDATE 1-Nissan CEO: U.S. plant under capacity to '10

Wed May 14, 2008 3:35am IST
 
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* At least one of U.S. plants will stay at 70-75 percent

utilisation until 2010

* New light commercial vehicle production to relieve

overcapacity

* Small-car shift in U.S. "not finished"

By Chang-Ran Kim, Asia auto correspondent

TOKYO (Reuters) - Nissan Motor Co (7201.T: Quote, Profile, Research) is likely to keep one of its U.S. factories running at 70-75 percent of capacity for the next two years as demand for pickup trucks and big SUVs dwindles, Chief Executive Carlos Ghosn said on Tuesday.

Japan's No.3 automaker, held 44 percent by Renault SA (RENA.PA: Quote, Profile, Research), has been working both of its U.S. assembly plants -- in Canton, Mississippi and Smyrna, Tennessee -- on a reduced, four-day week since last month as consumers increasingly opt for smaller cars and away from gas-guzzlers such as the Pathfinder and Armada SUVs.

"I don't think that in the short term there is a game plan" (to address the underutilisation issue), Ghosn told Reuters in an interview, adding that the problem was plaguing all automakers building trucks and large SUVs in North America.  Continued...

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