Nissan plans more shift cuts at Japan plants as demand declines

Nissan Motor prepares to cut more shifts at its three assembly plants in Japan because of declining demand, two sources stated on Friday, as the automaker continues having a hard time to recover from a decline in sales caused by the coronavirus pandemic.

Nissan prepares to cancel all-night shifts at its plant situated in Oppama, Kanagawa prefecture, and at a production line situated in Kyushu, southern Japan, between June 29 and July 31, according to the sources who don’t want to be identified as the information is not public.

The plants are generally closed on weekends.

Night shifts on a second line at Kyushu will also likely be canceled between July 20-31, the sources stated, adding that a plant located in Tochigi prefecture will be closed for eight days next month.

A Nissan spokeswoman said she was reviewing the issue.

A final decision is expected soon, the sources stated. The recent production cuts come after the automaker has cut output at home and abroad since February, starting in China.

“Production uncertainties will likely continue, given that we may also face procurement issues depending on additional stoppages at overseas plants,” one of the sources stated to Reuters.

Nissan, which posted its first annual loss in 11 years in the year just ended, is having a hard time to regain profitability in the aftermath of its ouster of former CEO Carlos Ghosn’s arrest on November 18, over the charges of financial misconduct.

The recent output cut would be another big hit for its Kyushu plant. Most of the plant’s production is exported.

The plant builds the Rogue, Nissan’s top-selling SUV crossover model, whose sales have decreased ahead of plans to launch a remodelled version this year.