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CORRECTED - UPDATE 1-Nissan boosts U.S. production of Altima sedans

Mon Jun 9, 2008 4:09pm EDT

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(Corrects monthly production figure in paragraph 5)

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(Adds Altima production numbers)

DETROIT, June 9 (Reuters) - Nissan Motor Co (7201.T) said on Monday it is increasing production of its Altima mid-size sedan because of strong demand in the U.S. market.

U.S. sales of Altima in May increased 38 percent compared with a year ago. Overall, Nissan sales were up 4.4 percent in May, a month that saw the U.S. market for vehicles shrink due to record-high gas prices and declining consumer confidence.

Buyers defected from high-margin trucks and SUVs to cheaper and more fuel-efficient cars more rapidly than expected due to high gasoline prices.

Cars, which had accounted for less than half of industry volume in 2007, surged to 57 percent in May.

The Japanese automaker plans to make about 2,000 more Altima sedans every month to boost monthly production of the cars to about 17,000, Nissan spokesman Brian Brockman said.

Nissan will add one more shift at its plant in Canton, Mississippi, where the Altima sedans are made, he said. The plant also produces the Titan full-size pickup truck, Quest minivan, Armada full-size SUV and Infiniti QX56 full-size luxury SUV. (Reporting by Poornima Gupta; Editing by Brian Moss and Braden Reddall)



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