NISSAN EXPECTED TO REVIVE Z MODEL.

Byline: Brian S. Akre Associated Press

Nissan Motor Co. plans to return its most famous vehicle, the Z sports car, to the North American market to help reverse its sales dive.

The Japanese automaker will announce Wednesday at the New York International Auto Show that a production version has been approved, said a company source who spoke on condition of anonymity.

Nissan displayed a prototype of the new Z-car in January at the North American International Auto Show in Detroit and has been hinting for nearly a year it may go into production.

``I think it's a great move,'' said analyst Wes Brown of Nextrend, an industry consulting firm in Thousand Oaks. ``When we first saw the vehicle in concept form, our opinion was it's a no-brainer. It's an image car, and that's something that Nissan's been lacking for a while.''

The fortunes of Nissan, the second-largest automaker in Japan, have declined in large part because of its failure in the U.S. market, where its cars and trucks are considered reliable but bland. Last year its U.S. sales fell 14 percent in a robust market.

Its huge debt, estimated between $22 billion and $37 billion, has forced Nissan to consider an alliance with another automaker. DaimlerChrysler AG backed out of talks with Nissan two weeks ago, though Nissan now is negotiating a possible linkup with France's Renault SA.

The original Datsun 240-Z was a big hit with Americans when it debuted 30 years ago. It was stylish, agile and affordable - traits Nissan is hoping the new Z-car will inherit as well.

Analysts expect the new Z could go into production within the next couple of years, but it will face a lot more competition. Honda Motor Co., Audi AG and Toyota Motor Corp. all have new roadsters planned to hit the market in the next year or two.

CAPTION(S):

Photo

PHOTO (Color) The new Nissan Z-car