Nissan cuts Kyushu Plant production by one-third due to declining U.S. market

Nissan has decided to cut planned production by a third at its Kyushu plant in southwest Japan this month, reducing the output of its flagship Rogue crossover model, according to sources familiar with the matter.

The Japanese automaker is grappling with weak U.S. demand for its ageing lineup, exacerbating the challenges in its largest market.

The company reported a near wipe-out in profits for the April to June period and downgraded its full-year outlook after being forced to offer deep discounts in the U.S. market. This move underscores the deepening risks Nissan faces compared to rivals like Toyota and Honda, who have capitalized on the rising demand for hybrid vehicles in the U.S. Nissan, however, does not offer hybrid models in the U.S., missing out on this recent market upswing.

In July, Nissan plans to produce just under 25,000 vehicles at the Kyushu plant, with about 10,000 of these being the Rogue crossover for export, half of the previously planned number. This production cut has led to reduced working hours for line workers at the plant, now clocking slightly over seven hours a day instead of the usual eight.

Nissan has struggled with an excess of 2023 Rogue models in the U.S., which have become harder to sell with the introduction of the 2024 model. The company has had to offer aggressive incentives to clear out the 2023 inventory while holding back on promoting the higher-margin 2024 model aggressively.

In a bid to turn around its fortunes, Nissan announced in March its plan to launch 30 new models over the next three years, aiming to boost global sales by 1 million vehicles while cutting costs to improve profitability.

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