May 19, 2020

Nissan to cut North American production by 20%

Pouyan Broukhim
1 min
Nissan to cut North American production by 20%

According to Japanese media outlet Nikkei Business Daily, Nissan is set to reduce its North American output by up to 20% in the aim of correcting its falling profitability in the US.

The company has been aggressively pursuing its growth strategy across America in the aim of raising its presence within one of the world’s leading automotive markets. In line with this, Nissan has doubled its car sales in North America to 1.6mn units annually over the course of the past eight years.

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However, this initiative has seen rising discounted sales, reducing the company’s regional profitability. As a result, Nissan is now committing to cutting back its production within the US, switching its overriding regional strategy from one of aggressive growth to one of sustained profitability.

The firm has already begun to cutback its output production at five plants across the US and Mexico, with approximately 60% of the company’s total vehicles sold in the US being produced locally.

However, despite the cuts, Nissan has reportedly said that jobs are not under threat and that no production lines will be completely halted, with new output levels set to be confirmed later this year.

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