Nissan May Source Vehicles from Renault’s Korean Unit

Capacity-constrained Nissan Motor wants to boost its vehicle output by allocating some production to the underutilized plants of Renault Samsung Motors, the South Korean subsidiary of its alliance partner Renault, The Nikkei reports.

The Tokyo-based newspaper, which does not cite its sources, predicts Renault Samsung will make tens of thousands of SUVs and large and midsize cars for Nissan. It says Korea's favorable exchange rates and new free trade agreement with the European Union make the country an attractive export base.

In the past, Renault Samsung has supplied the Japanese carmaker with Nissan-badged sedans for African and Middle Eastern markets, according to The Nikkei.