Nissan's Sunderland plant: may be denied investment

"We are just gathering all the information necessary to make a good decision for Nissan both in the short term and in the long term."

Nissan said on Monday it was "optimising manufacturing capacity utilisation... to meet increased demand and to reduce exposure to foreign exchange fluctuations".

The future of the Sunderland plant, which employs 5,000 people, is set to be decided by the end of 2000.

The firm is also to make an announcement "in the coming weeks" on US strategy.

Nissan is rumoured to be planning a $1bn vehicle assembly plant for central Mississippi, creating 4,000 jobs, and allowing the production of a full-size pick-up truck and a new generation of minivans.

Sales figures

Demand for US cars is meeting expectations, while European and Japanese markets are softer than expected and sales in developing countries beat forecasts, the firm said.

Results snapshot

April-Sept Operating profit: 136.6bn yen (up 130%) Cost cuts:192bn yen Vehicle sales: 1.31m (up 15%) Forecasts for 2000-01 Operating profit: 220bn yen Net profits: 250bn yen (firm lost 684.4bn yen, 1999-2000) Vehicle sales: 2.72m (up 8%)

But thanks largely to the cost-cutting, which is to cut supply costs by 10% over 12 months, two points better than expected, the company said full-year operating profits would come in at 220bn yen (�1.4bn).

"This is a prudent forecast," Mr Ghosn said. "The preliminary figure illustrate Nissan's highest achievement in the last 10 years. And it is fair to say this is only the beginning."

Net profits are now forecast to reach 250bn yen (�1.584bn), compared to a loss of 684.4bn yen (�4.337bn) for the year to March.

'Le cost killer'

Brazilian-born Mr Ghosn, who was educated in Paris, earned the nickname as "le cost killer" for a record of tough restructuring plans, including a US rationalisation implemented in 1989 following Michelin's merger with Uniroyal Goodrich.

After joining Renault in 1996, he helped haul the firm back into profitability, and at Nissan is charged with implementing a revival plan which axe 210,000 jobs and cut costs by 20%.

He has also earned the nickname "seven eleven" for the long hours he works.

DaimlerChrysler follows

Meanwhile DaimlerChrysler is using the turnaround Mr Ghosn has achieved at Nissan as the inspiration for a restructuring at Mitsubishi Motors, reports said on Monday.

Jurgen Schrempp: taking the Ghosn model to Mitsubishi

DaimlerChrysler, which owns 34% of Mitsubishi, is to install Rolf Ecrodt as chief operating at the ailing Japanese carmaker next year.

"We see Carlos Ghosn doing a good job," Jurgen Schrempp, DaimlerChrysler chairman, told the Financial Times. "There are similar things we have to do at Mitsubishi."

Mitsubishi has been hit by a scandal over suppressing customer complaints. The firm, which has been the subject of a police investigation, has recalled more than 900,000 vehicles following the discovery of the cover up.