Nissan CEO says U.S. to stabilise at best in 2009-10

By Marcel Michelson

CASCAIS, Portugal (Reuters) - Nissan Motor Co (7201.T: Quote, Profile, Research) Chief Executive Carlos Ghosn said on Thursday that the U.S. auto market could stabilise in 2009-2010, and the industry overall would rely mostly on emerging markets to expand.

"Japan at best will see stagnation, West Europe at best stagnation, the U.S. is slumping in 2008 and at best in 2009-2010, we will see stabilisation," he told a news conference in Portugal where Japan's third-largest carmaker was showing its model line-up to the international media.

"The growth will come from emerging markets."

Ghosn, also head of Nissan's majority shareholder Renault SA (RENA.PA: Quote, Profile, Research), repeated that the two companies remained open to expanding their alliance to a third member but that they were in no rush.

"An alliance in North America would make sense," he said, reiterating a stance that first emerged when billionaire investor Kirk Kerkorian suggested a three-way union to include troubled General Motors Corp (GM.N: Quote, Profile, Research) two years ago.

More recently, the questions have turned to whether Nissan could expand its ties with Chrysler LLC [CBS.UL] after they signed a deal this month to supply each other with vehicles.

"Our alliance (Nissan-Renault) is already 7 million vehicles a year, which is a good size. There is no urgency. I am not hunting. It would be an opportunity," Ghosn said.

"The thing with Chrysler is an OEM (original equipment manufacturing) deal. Of OEM deals, there will be more."