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Nissan cuts output at Japan's largest plant by one-third due to weak U.S. demand

2024-07-27

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IT Home reported on July 26 that Reuters quoted two people familiar with the matter as saying that Nissan Motor cut its planned production at its largest plant in Japan by one-third this month. The company isgrappling with weak U.S. demand for its older modelsAt the same time, the move will also reduce production of its flagship crossover model.

Nissan Motor reported today that its profits in the second quarter of this year (IT Home Note: April to June) "almost completely disappeared" and also lowered its full-year performance expectations.Forced to offer deep discounts, showing the heightened risks it faces in its largest market.

Nissan plans to start production of the new model at its Kyushu plant in southwestern Japan this month, the people said.Less than 25,000 vehiclesSpecifically, Nissan expects to produce about 10,000 Rogue crossovers at its Kyushu plant for export.Half of this month's planned production

Due to the production cuts, workers at the Kyushu plant now work 10 hours a day.Less than the usual 8 hours, working hours are slightly more than 7 hours a day.


Nissan is in the midst of selling the 2023 Rogue in the U.S., a person familiar with the matter said.Backlog status, and the launch of the 2024 model makes these cars increasingly difficult to sell. In order to clear the inventory of 2023 models, Nissan has to offer incentives while being cautious about promoting the more profitable 2024 models.

Nissan said in March that it will launch 30 new models in the next three years and plans to increase global sales by 1 million vehicles while cutting costs to improve profitability. Of the 30 new models in its plan, 16 will be electrified models, including 8 electric vehicles and 4 plug-in hybrid vehicles.

The report said that the United States and China are Nissan's two largest markets, and the rise of strong emerging competitors such as BYD in China may mean that Nissan will eventually become more dependent on the US market as the prospects for the Chinese market "shrink".