Nissan to cut production by up to 20% in Mexico, US during Summer
Japanese automaker Nissan Motor plans to cut vehicle production during the summer in North America by as much as 20% in order to stabilize profitability, Nikkei business daily reported.
According to the Japanese news outlet, Nissan’s sales have maintained afloat at the cost of increased discounts and fleet sales, which has eroded its profitability.
Cuts are already in progress at two assembly plants in the U.S. and three in Mexico, where workers have been instructed to stay home an extra two or so days a week until autumn.
Employees will not be let go and production lines will not be completely halted, but their output will slow down roughly 10% to 20%.
Parts suppliers have been informed of the reductions, which are likely to temporarily impact their earnings, the Nikkei said.