Nissan Motor Co. is in talks with U.S. auto-parts maker Delphi Automotive Systems Corp. for a possible deal to sell Nissan's stake in its affiliate supplier Calsonic Kansei Corp., Nissan President Carlos Ghosn said Friday.

The Japanese automaker is selling off its suppliers in an effort to cut costs. Under a "revival plan" led by Ghosn, Nissan has been trying to halve its suppliers from about 1,100 companies to less than 600 by fiscal 2002.

Nissan is in talks with other companies on Calsonic Kansei but Delphi is thought to be a serious contender.

Delph is the world's largest auto-parts maker. A deal with the Nissan affiliate will help Delphi make inroads in Japan and the rest of Asia.

Nissan owns about 35 percent of Calsonic Kansei, which makes electronics, air conditioners, mufflers and other auto parts. Last year, Calsonic recorded sales of $2.6 billion and Kansei $1.2 billion. The two companies merged in April.

Earlier this week, Nissan agreed to an offer from U.S. car-seat maker Johnson Controls to buy Nissan's 38 percent stake in another affiliate, Ikeda Bussan, for about $100 million.

Analysts say Nissan must continue to streamline its bloated supplier network if it hopes to return to profitability this year as Ghosn has promised. Nissan posted losses for seven of its last eight years.

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