In a statement the government of Aguascalientes said this week that Nissan -- Japan's No. 2 automaker -- which already has a plant in the north-central state, was mulling new manufacturing investments in Latin America's second biggest economy.
A spokesman in Mexico for Nissan, which already has a plant in the city of Cuernavaca just south of Mexico City, said that the firm was "continuing to study opportunities to install additional capacity" in key markets.
Aguascalientes said state governor Carlos Lozano de la Torre had learned on a trip to Japan that his state was in the running for the plant. The plant would create around 10,000 jobs over the medium-term, Aguascalientes said.
During an Oct. 24 visit to Japan, the governor pitched his state as the best option for the plant to Carlos Ghosn, CEO of Nissan and its French affiliate Renault SA , daily Reforma said.
According to Reforma, Lozano de la Torre said that Nissan would make a decision on Nov. 18 and that five other Mexican states were also competing for the plant. It did not name the other states.
Nissan and other Japanese automakers -- stung by the strong yen that has been eroding profits on exports -- are exploring ways to shift output of cars and parts outside Japan.
Mazda Motor Corp. and Honda Motor Co. have announced plans this year to build assembly plants in Mexico, in part to avoid currency swings.