Reuters quoted Mr Carlos Ghosn chairman & CEO of Renault Nissan as saying that Nissan will invest about USD 1.5 billion in a new Brazilian plant as it seeks to expand its market coverage in the Latin American giant with the launch of new compact models.

Mr Ghosn told Reuters in an interview in Rio de Janeiro that the French Japanese partnership plans to introduce many models to the Brazilian market in the coming years as it seeks to double its share of auto sales in Latin America's largest economy to 13% by 2016.

Renault Nissan plans to build the new Nissan factory and expand an existing Renault plant in Brazil as part of efforts to boost its presence in the world's fourth largest car market, where it is currently fifth in sales.

The Brazil offensive is the latest leg of the partnership's strategy of boosting its sales and raising market share in the BRIC countries of Brazil, Russia, India and China. For Mr Ghosn, who grew up in Rio de Janeiro and still considers it his home, the investments carry an emotional element and well as making business sense.

He added that "It is the only BRIC country where we did not announce an offensive strategy. We have already announced it for China, for Russia, for India. Now is the right time to announce it for Brazil. For me, on top of the objective reasons, it's a very emotional moment because I like Brazil, I was born in this country."

The new Nissan plant in Resende, about 56 miles from Rio, will produce Nissan brand vehicles and the group will expand its main factory in Sao Jose dos Pinhais, where it has made Renault brand vehicles since 1998.

Mr Ghosn confirmed a Reuters report that the group would invest about USD 1.5 billion in the new Nissan plant.

His aim is to raise Nissan's share of the fast growing Brazil market to 5% by 2016 from around 1.5% now. Renault's share is seen gaining to 8% from just over 5% now.

(Sourced from www.reuters.com)