ONE of its most famous advertising slogan reads "you can with a Nissan".

But when it comes to predicting where the new Micra model will be built it appears you most certainly can't.

A decision is expected by December at the latest, and the smart money appears to be on Sunderland getting a hefty slice of the contract with the Renault factory at Flins, France, receiving its fair share.

The messages from Nissan management appear to indicate that with a little help, including £40m in state aid and a new 24-hour shift schedule, Sunderland remains its favoured choice for the Micra.

But the strength of sterling remains a cause of great concern, and although the future of the 5,000 employed directly at Nissan appears to be safe, for the time being at least, the tens of thousands employed in the car component industry in the North-East must fear for their very futures.

MD of Nissan Motor Manufacturing (GB), John Cushnaghan, this week confirmed that if Wearside does land the new Micra the proportion of British-sourced parts is likely to fall sharply from the present 70 per cent of Nissan's European component budget to offset the strength of sterling.

Speaking from this week's Birmingham Motor Show, Nissan corporate affairs manger Stewart McKee said: "We've always maintained that a decision on the where the new Micra will be built will be made by the end of the year, and that remains the case.

"The task for Sunderland is to demonstrate that it can make the car competitively, in comparison to Nissan's other plants.

"At present the Wearside plant is at a 30 per cent disadvantage against, for example, one of our production plants in France.

"It has to reduce costs to produce cars cheaper and it makes simple economic sense to ensure our component costs are competitive."

The recent announcements by Carlos Ghosn of the need for a commitment to joining the euro, point some industry experts to the Nissan president clearing the way for taking production of the new Micra overseas.

Professor Garel Rhys, director at the centre of automotive research at Cardiff University, believes that Nissan will not be allowed to hold the Government to ransom.

He said: "It is looking more and more the case that Mr Ghosn is preparing the ground for the new Micra to be built at a Renault factory.

Professor Rhys added: "Industrialists can ask and plead until they're blue in the face but the Government will not be held to ransom..

"In the same way the farmers and hauliers cannot force the Government's hand then neither can car manufacturers.

"But, if the contract went overseas, I don't think it would be disastrous for Nissan UK.

"It is 40 per cent more productive than any car plant in Europe and producing the Almera and Primera should be enough."

Professor Rhys also questioned whether the Government could justify its £40m offer of state aid for a company as successful as Nissan.

The European Commission confirmed recently it was not convinced that the cash injection was necessary, ordering a full investigation into whether the funding is compatible with EU rules.

That outcome appears to be at the bottom of the list of concerns for those in the car component industry.

The only definite outcome of the new Micra contract appears to be that a section of the North-East workforce will undoubtedly lose out.