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Mitsubishi Motors plans to relocate its North America headquarters from California to Tennessee, a move that will bring it closer to its majority shareholder Nissan Motor.

The Japanese automaker said it would spend US$18m on a new headquarters in Franklin, Tennessee, and create 200 new jobs in the state. 

Nissan acquired a 34% stake in the company in 2016 and has a manufacturing plant in Smyrna, Tennessee, making potential synergies between the two companies in North America easier to manage. 

Mitsubishi sold a little around 118,074 vehicles in the US in 2018, up by almost 14% on the previous year and mainly comprising the Outlander SUV and the Mirage small car.

Nissan sold 1.34m units, down 6.6% on the previous year.

Mitsubishi said it expects the relocation to begin in August and to be completed by the end of the year.

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Nissan relocated from California to Tennessee some years ago and, more recently, Toyota also moved east, building a new campus in Plano, near Dallas and Fort Worth, in Texas.