Nissan plans 30% cut in car output to December as virus hits demand

A member of the cleaning staff walks past the Nissan logo displayed on a screen during a media preview of the company's Ariya electric crossover sport utility vehicle at Nissan Pavilion Yokohama in Yokohama, Japan, on Tuesday, July 14 2020. Nissan unveiled a new electric vehicle and redesign of its hamburger corporate logo, seeking to make a fresh start after months of management turmoil and declining profitability.
A member of the cleaning staff walks past the Nissan logo displayed on a screen during a media preview of the company's Ariya electric crossover sport utility vehicle at Nissan Pavilion Yokohama in Yokohama, Japan, on Tuesday, July 14 2020. Nissan unveiled a new electric vehicle and redesign of its hamburger corporate logo, seeking to make a fresh start after months of management turmoil and declining profitability.
Image: Kiyoshi Ota/Bloomberg via Getty Images

Nissan Motor Co is planning a 30% year-on-year cut in global vehicle production through December as falling demand due to the Covid-19 pandemic complicates its turnaround efforts, two sources with knowledge of the matter told Reuters.

Japan's No 2 car maker plans to produce about 2.6 million vehicles between April and December, down from 3.7 million during the same period last year, the sources said. Nissan made 4.6 million cars in the financial year ended March.

The sources spoke on condition of anonymity as the information is not public. Nissan was not immediately available to comment.

Global car makers are struggling after factories were shuttered earlier this year to stem the spread of the pandemic.

Car dealerships were also closed in many countries, pummelling vehicle sales in March, April and May, though the fall in sales slowed in June as economies started to reopen.

The pandemic has been particularly difficult for Nissan, which was already grappling with falling sales and a deteriorating cash position. In May, it unveiled a far-reaching restructuring plan after posting its first annual loss in 11 years.


In the first two months of this financial year, the maker of the Rogue SUV and the Leaf electric car made about 307,000 vehicles globally, down 62% from last year, according to monthly production figures.

It will announce June output figures next month.

Nissan is planning for production to increase from 510,000 vehicles in the first quarter to about 930,000 in July-September, the sources said. Second quarter output will be about 25% lower from a year ago, according to Reuters calculations.

Production is expected to increase to about 1.1 million vehicles in October-December, roughly 8% lower on the year.

In July-September, Nissan's output will be hit hardest at home, falling about 47% from last year, after the car maker said it would cut more shifts at its Japanese assembly plants. Domestic output will recover slightly in the months up to December.

Would you like to comment on this article or view other readers' comments? Register (it’s quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.

X