Tennessee looking like it's Nissan's choice.

As civic leaders scramble to arrange an incentive package that would keep Nissan Motor Co. from moving its U.S. headquarters out of L.A., the company appears to be looking at Tennessee real estate.

The battle to keep Nissan and its 1,300 jobs here by the "Red Team," an hoc group that includes representatives of Gov. Arnold Schwarzenegger, County Supervisor Yvonne Brathwaite Burke and the Los Angeles Economic Development Corp., is looking more futile by the day.

George Peterson, an analyst at auto industry research firm AutoPacific Inc., said he had been told that Nissan executives were scouting properties for what would be its new offices in Franklin, Tenn., near its factory in Smyrna. "If the trigger hasn't been pulled, it's halfway pulled," he said.

Nissan has only acknowledged that it is studying the possibility of a move. Spokesman Fred Standish reiterated last week that "No decision has been made."

But Chief Executive Carlos Ghosn, known as "Le Cost Cutter" for his drastic--and effective--revamping of Nissan, told audiences at the Tokyo Motor Show this month that "headquarters for us aren't temples," interpreted as a reference to rumors of the move.

Nissan has already proven the point by announcing plans to move its world corporate headquarters from Tokyo to Yokohama by 2010. It's also considering moving its European headquarters away from Trappes Cedex, France--both cost-saving measures.

The state of Tennessee is offering a package of incentives, including $2,000 for each new job created, state and property tax credits and funds for training employees. Also, real estate, energy and labor costs are much lower than in Southern California.

Locally, the Red Team has said it will offer Nissan an incentive package worth at least $2 million combining tax and energy rebates, traffic improvements and work training to keep its headquarters in Carson.

Carson Mayor and Red Team member Jim Dear said the team would meet with Nissan officials this week and were still hopeful they could retain the headquarters here.