Nissan Will Cut Vehicle Production In Japan, Here's The Reason

Nissan Rogue. (Doc. Nissan Global)

JAKARTA - Recently, Nissan is rumored to be cutting a third of production at its largest factory in Kyushu, Japan. This step was taken due to a weakening demand for their flagship crossover in the United States (US).

According to a Reuters report on Tuesday, July 30, Nissan plans to produce less than 25,000 units at the Kyushu plant this month. Two anonymous sources said, of that number, about 10,000 Rogue model units would be exported, only half of the initial target.

With this production reduction, workers in Kyushu production lines are now working less than eight hours a day, down from the usual more than seven hours a day.

Nissan, based in Yokohama, also reported a decline in profits from April to June and cut projections for a full year after being forced to offer large discounts in the US. Unlike competitors such as Toyota and Honda, Nissan does not offer hybrid vehicles in the US, resulting in them falling behind in an increasing demand trend for hybrid models.

Unfortunately, this manufacturer has yet to provide an official response regarding the reduction in production. Apart from Kyushu, Nissan is also producing crossovers in Smyrna, Tennessee, USA.

In an effort to catch up with Toyota and Honda, Nissan plans to bring a kei car in the local Japanese market, following the success of Sakura's model. Nissan is considering moving production to the Kyushu plant starting in 2028. This facility has a production capacity of up to 500,000 units of vehicles, with 80 percent of these capacities to be used to produce the Kei Car EV, while shifting the production of the Rogue model to other production lines.

With these strategic steps, Nissan hopes to overcome its challenges and strengthen its position in the global automotive market.