1. home
  2. news
  3. Nissan to Cut North American Output by as Much as 20 Percent

Nissan to Cut North American Output by as Much as 20 Percent

Cutbacks will last until the fall

Auto sales are starting to cool off here in the U.S., having dropped in 2017 for the first time in eight years. Nissan managed to improve its numbers slightly by the end of last year, but the automaker is still preparing itself for a continued industry slowdown.

According to Japan's Nikkei, the automaker will slash production by as much as 20 percent in North America. It has already made cuts at two assembly plants in the U.S. and three in Mexico, the report says. Workers are keeping their jobs, but will stay home an extra two or so days a week as the lines slow. Production is expected to start ramping back up in the fall when the redesigned 2019 Nissan Altima arrives.

For the new fiscal year, Nissan announced it would alter its sales strategy in the U.S. No longer does the company want to boost market share through generous incentives and low-margin corporate sales, as it's now more focused on profit. By the summer, Nissan will have dropped around 10-20 percent of its North American output on the year, a move that is expected to decrease the automaker's U.S. sales 3 percent this fiscal year.

The Altima and Rogue are some of Nissan's best-selling products in the U.S., where it ranks just sixth in terms of market share. Despite the production slowdown, Nissan is preparing new products for our market including the Kicks crossover and a longer-range version of the Leaf.