UPDATE 2-Nissan, Bosch in talks on hybrid systems tie-paper

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TOKYO, Nov 14 (Reuters) - Japan's Nissan Motor Co (7201.T: Quote, Profile, Research, Stock Buzz) and Robert Bosch GmbH [ROBG.UL], the world's largest auto parts supplier, are in talks to form a comprehensive alliance in hybrid systems and parts, a newspaper said on Wednesday.

Japan's third-biggest auto maker has lagged rivals Toyota Motor Corp (7203.T: Quote, Profile, Research, Stock Buzz) and Honda Motor Co Ltd (7267.T: Quote, Profile, Research, Stock Buzz) in green technology but plans to offer a hybrid vehicle using internally developed technology as early as 2010.

Germany's privately held Bosch is dominant in diesel fuel injection systems but has also been developing hybrid powertrains, which link combustion engines with an electric motor.

Japan's Nikkan Kogyo newspaper said the companies were in talks because they had compatible hybrid technology.

Nissan is seeking to ease the burden of heavy research and development costs, while Bosch has also worked on developing batteries needed in hybrids, it said.

Nissan spokeswoman Haruko Wada declined to comment on the report, saying the company did not divulge information about its suppliers.

Having cut spending on research and development heavily in the late 1990s as it skirted bankruptcy, Nissan has been aiming to close the gap with hybrid leaders Toyota and Honda with clean diesel and electric systems.

Nissan's Chief Executive Officer Carlos Ghosn has in the past been lukewarm on hybrid technology, arguing that it was too expensive for consumers while reaping little or no profit for car makers. (Reporting by Edwina Gibbs; Editing by Hugh Lawson)