Nissan to cut production due to US slump

[October 21, 2008]  TOKYO (AP) -- Nissan Motor Co. said Tuesday it would cut auto production at its two domestic plants due to sluggish demand in the United States.

Japan's third-biggest automaker will slash output by 28,000 units, mostly Infiniti luxury models, at its factory in Tochigi, north of Tokyo, Nissan spokeswoman Ikue Matsuura said. The production cut would last five months starting from November, she said.

"Our sales in the United States remained sluggish. We must adjust our output accordingly," the spokeswoman said.

Nissan also planned to cut production by 37,000 units, mostly the sport utility vehicles Murano and Rogue, at its plant in Fukuoka, southern Japan, from November to March next year, Matsuura said.

Nissan's sales in the United States dropped 37 percent year-on-year in September due to slowing demand as American consumers tightened their purse strings amid the deepening financial crisis.

The Asahi daily said Tuesday Nissan would slash the number of temporary workers at its domestic factories to cope with the poor U.S. sales. The spokeswoman declined to confirm the report.

Last week Nissan said it was laying off 1,680 workers in Spain due to weak demand.

[Associated Press]

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