NISSAN TO BOOST LOCAL CONTENT IN U.K. CARS
<Nissan Motor Manufacturing (UK) Ltd> has
reached agreement with <Lombard North Central Plc> of the U.K.
To build plants and boost the local content in Nissan's U.K.
Produced cars to 60 pct in 1988 from 40 to 50 pct, the Nissan
Motor Co Ltd <NSAN.T> said.
    The agreement will allow the cars to be designated as
domestically manufactured rather than imported vehicles, Nissan
said. The agreement was reached through negotiations with the
British government and the European Community (EC) after they
threatened to impose duties on imports.
    According to the 230 mln stg contract, Lombard North
Central, an affiliate of National Westminster Bank Plc
<NWBL.L>, will build and lease plants for engine assembly, body
panel pressing and resin moulding by 1988. They will be near
the existing Nissan plant in Sunderland in north-east England,
Nissan said. The Sunderland plant currently produces 24,000
Bluebird cars annually for the British market.
    Nissan hopes to begin U.K. Exports to Europe in 1991 after
building an engine machining plant which would boost output to
100,000 units a year and local content to above 80 pct, in
accordance with EC requests, the spokesman said.
 REUTER
