Nissan announced a significant reduction in production at its largest plant in Japan this month. According to Reuters, the company plans to cut production by a third due to weak demand for its cars in the United States.
The Japanese automaker has faced serious financial problems, including a near-total loss of profit in the April-June period. The company was forced to offer significant discounts in the US, which negatively affected its financial performance and forced to revise the forecast for the entire year. It shows the deepening difficulties facing Nissan in its biggest market.
Unlike its competitors such as Toyota and Honda, Nissan does not offer hybrid models in the US. This limits the company's ability to take advantage of the growth in demand for hybrids that has occurred as interest in electric vehicles has waned. As a result, demand for Nissan products in the US market remains low.
Nissan's plant in Kyushu, located in southwestern Japan, plans to produce just under 25,000 vehicles this month, including about 10,000 Rogue crossovers that will be exported. This is half as much as previously planned, which emphasizes the seriousness of the situation.
The company's move is part of a broader strategy to adapt to changing market conditions, which includes revising production plans and adapting to new economic realities. A decrease in production may also affect the company's overall financial condition and market position.
Accordingly, Nissan will continue to monitor market trends and make necessary adjustments to its strategies to regain its competitiveness and improve financial performance in the future.
e-finance.com.ua