Nissan shelves factory plan in Morocco

Japan's Nissan Motor Company said it was suspending participation in a factory in Morocco with its French partner Renault as it tries to weather the global slowdown.

"Nissan will suspend its participation in the industrial project near Tangiers," Carlos Ghosn, CEO of Nissan and Renault, said. The factory, planned to build vans, was set to open in northern Morocco next year and by 2013 to produce 400,000 vehicles annually.

Nissan announced the suspension of the Morocco project as part of a cost-cutting plan that includes eliminating 20,000 jobs around the world. Nissan said it expected a major loss this year.

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