Will Ghosn Continue his Wily Game? just-auto.com Managing Editor Asks As Nissan Announces 235 Million Pound Investment in the Sunderland Plant

    LONDON, Jan. 25 http://www.just-auto.com --
Nissan Motor Co Ltd is to invest 235 million pounds sterling ($341.7 million)
at its major UK assembly line in order to build its new Micra model at the
plant in Sunderland, northeast England says the news article at
http://just-auto.com/editorial_detail.asp?id=41 .  The decision hasn't been a
quick one and Nissan President Carlos Ghosn played a wily game in reaching it,
according to David Legget, Managing editor for just-auto.com.
    Leggett continues, "The question of this plant has been debated for many
months and lobbying has been intense.  Even Tony Blair, UK Prime Minster was
sufficiently rattled to get on the phone to Ghosn on more than one occasion.
The messages coming out from the Ghosn camp were consistent:  'Oh the woe of
the exchange rate.  It could be tipping the balance towards a Renault plant.'
Even the 40 million pounds government grant, approved by the European
Commission, was being downplayed as insufficient on its own to swing the
decision."
    "In the end, Ghosn went with Sunderland.  He hung out for more and more
concessions from the threatened Sunderland (north-east England) plant and he
got them.  There will be even more cost cutting," continues Leggett.
    However, for the moment, it's good news for the UK as Sunderland
represents a huge investment by Nissan and is the most productive plant in
Europe.  Leggett says, "It's quite a sobering thought that all of that could
have been wiped out by the exchange rate.  But at least the pain of
cost-cutting and trying to live with an adverse exchange rate now should bring
a gain when the exchange rate moves the other way.  Light in the gloom?
Certainly."
    For Leggetts full editorial see:
http://just-auto.com/editorial_detail.asp?id=41

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