"We are very confident about the potential benefits," Ghosn said, referring to growing demand from US consumers and many government officials for increased fuel efficiency and reduced tailpipe emissions.

Ghosn, who is also chief executive of Renault SA which controls Nissan, said the 2010 launch would start a broader diesel strategy in the United States, but said diesel would not be the only alternative to gasoline.

"It is difficult to say which technologies will prove to be the most popular among consumers, and preferences vary from one world market to another," he said.

"It's kind of a bet you are making that emission regulations are going to get tougher and energy prices are going to go higher," he said.

The diesel Maxima will be assembled in the United States and the engine produced by Renault. If successful, engine production would eventually move to the United States, he said.

Ghosn touted Renault/Nissan alliances in China and India and the prospect one day of of selling cars made in those countries in the United States at low prices but expressed no interest in bidding for Chrysler Group.

"It has to happen at the right moment," Ghosn told reporters after his speech, referring to the prospective sale of DaimlerChrysler AG's struggling US unit. "I don't think for us it's the right moment," he said.

Ghosn, credited with rescuing Nissan from near-bankruptcy in 1999, is under pressure after disclosures that Nissan may miss its sales target of 4.2 million vehicles next fiscal year. The goal is a centerpiece of his current business plan.

Ghosn would not comment on the sales reports, saying the company would discuss financial results on April 26.

But he cited the company's profit warning two months ago and some worried stakeholders as key reasons to focus internally and remain out of the Chrysler fray.