Nissan to Cut Domestic Production by Further 78,000 Units

Nissan Motor Co., Japan's third- largest automaker, will further cut its domestic auto production for fiscal 2008 by about 78,000 units from January 2009, marking the fourth reduction in domestic market this year, company sources said.

This further reduction is necessary to manage inventory levels and ensure a balanced production supply, in response to continued declines in global vehicle sales, the company said in a statement.

The Japanese automaker said it would eventually lay off all the 500 temporary employees during the first quarter of next year. In mid-November the company already decided to reduce the number of temporary workers from 2,000 to 500 by the end of this year.

The company is now cutting domestic production by a total of about 225,000 vehicles, or about 16 percent, from its original target of about 1.4 million for fiscal 2008.

Japanese automakers suffered severely from the slumping sales amid global financial crisis, especially in North America market. A rising Japanese yen also offset some of their profits.

Source: CRIEnglish