Nissan slows down production in Aguascalientes as US auto sales drop

30 March, 2018

Warning: foreach() argument must be of type array|object, bool given in /home/mexiconow/public_html/sites/mexiconow/wp-content/themes/mexiconowwpnew/single.php on line 253

Nissan is slowing production at several assembly plants, including those in Mexico, to keep the supply of vehicles on U.S. dealers' lots tight due to a weaker consumer demand.

The two plants that Nissan Mexicana operates in Aguascalientes idled during this week as a necessary measure to avoid layoffs due to the decrease in sales in the U.S. market.

The measures were discussed among the union representatives and their members during a series of meetings this week, according to the local press. The officials confirmed that the halts in recent days are precisely because sales are falling and production has to adjust to those levels.

According to the directors, another stoppage will take place during July. However, this new measure is due to the updates required in the production lines to adjust to the changes that the 2019 models will have.

The workers were officially told that this would be the only idled period, although the union leaders themselves acknowledged that there is a possibility that the measure could be repeated in April.

Japan's second-largest automaker is aiming to reach a 50-60 day supply of cars and trucks in August, when dealers start transitioning to sell 2019 model-year vehicles, Dan Mohnke, U.S sales chief for the Nissan brand, said to Bloomberg during the National Automobile Dealers Association's annual convention in Las Vegas.

Nissan reached 86 days of inventory as of Sept. 1 last year, and the company increased incentive spending and shipped more cars to rental companies and other fleet customers to help bring that number down.

In recent days another assembly plant in Cuernavaca, Morelos, shut down a complete production shift laying off hundreds of workers.

MexicoNow

- Nissan Cuernavaca plant shuts down third shift; lays off 550 workers

- GM leads Mexican auto exports in 2017; Nissan ranks first in production volume