Nissan Motor Co and Suzuki Motor Corp are considering joint production in Russia and Brazil to expand their ties in emerging markets, the Nihon Keizai Shimbun reported.

The two firms had already agreed in June that they would mutually supply vehicles to the domestic market and that Suzuki would produce small vehicles in India for Nissan from 2008.

They are now discussing the idea of Nissan Co. producing Suzuki-brand vehicles at a new 200 mln usd Nissan plant in St Petersburg, Russia, the report said.

The plant, due to start up in 2009, is expected to have an annual capacity of 50,000 units and make at least three midsize models equipped with two-liter and larger engines, the leading business daily said.

Suzuki currently exports sport utility vehicles from Japan and small cars from its plant in Hungary to

Russia.

Nissan, Japan's second biggest carmaker, has been assembling vehicles in Brazil since 2001, including pickup trucks and SUVs. But Suzuki pulled out from the market in 2003.

Now Suzuki plans to make a comeback in Brazil by 2008 and is studying the feasibility of having Nissan assemble its cars there, the daily said.

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