Nissan May Build Datsun Cars in Mexico

CEO Carlos Ghosn says Nissan Motor Co. is pondering a plan to introduce its low-cost Datsun brand in South America from a production base in Mexico.

Nissan will relaunch Datsun as an entry-level brand in emerging countries, beginning in India in February. The first model will be the Go five-door hatch, priced at about $6,700. It will be produced locally at a factory in Chennai that the company co-owns with alliance partner Renault SA.

Nissan plans to introduce Datsun in Indonesia, Russia and South Africa next year. But Ghosn says the company hasn't decided where else to build cars for the brand. Earlier media reports say Nissan is likely to build Datsun cars in Russia through affiliate OAO AvtoVAZ.

Observers expect Datsun production to be integrated into existing Nissan factories, at least until volume and the product lineup grows enough to warrant stand-alone facilities for the brand.