Nissan’s Global Production Falls for Fifth Straight Month
Nissan Motor said on Thursday that its global production fell for a fifth straight month in October, led by downshifts at most of its manufacturing hubs except for Mexico.
Global Sales Also Drop
While global sales also dropped for a seventh month, sales in Nissan’s core market, the United States, grew for the first time in three months.
Restructuring Efforts Under Threat
Nissan earlier this month announced plans to axe 9,000 jobs and 20 per cent of its manufacturing capacity globally to cut costs, after the third-biggest Japanese carmaker behind Toyota and Honda suffered sales slumps in China and the US.
The threat of US tariffs is now clouding the struggling automaker’s restructuring efforts.
October Production Figures
Nissan’s worldwide output for October decreased 6 per cent from the same month a year earlier to 290,848 vehicles. Production both in the US and China fell 15 per cent, while output in Britain plunged 23 per cent and production in Japan shrank 4 per cent.
A bright spot was Mexico, where production rose 12 per cent to 70,382 vehicles. That meant nearly one in four Nissan cars worldwide was made in Mexico last month.
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Tariff Concerns
However, that could come under pressure as US president-elect Donald Trump this week said he would impose a 25 per cent tariff on imports from Canada and Mexico upon taking office in January.
Nissan has exported some 300,000 vehicles from Mexico to the US this year, and will closely monitor tariff plans, chief executive Makoto Uchida said shortly after Trump’s re-election.
October Sales Figures
In October, Nissan sold 13 per cent more vehicles in the US, its first growth since July, led by the compact sedan Sentra. Nissan’s sales also rose in Mexico and Canada but fell by double-digit rates in China and Europe to result in a 3 per cent drop globally.
By contrast, Toyota’s global sales increased by 1.4 per cent to mark the first rise in five months in October, while its global production continued to decrease due in part to a production halt in the US.
Conclusion
Nissan’s global production and sales have been struggling, with the company announcing plans to cut jobs and manufacturing capacity. However, the threat of US tariffs could further complicate the company’s restructuring efforts.
FAQs
Q: Why did Nissan’s global production fall?
A: Nissan’s global production fell due to downshifts at most of its manufacturing hubs except for Mexico.
Q: How did Nissan’s sales perform in October?
A: Nissan’s global sales dropped for a seventh month, but sales in the US grew for the first time in three months.
Q: What are the implications of US tariffs on Nissan?
A: The threat of US tariffs could further complicate Nissan’s restructuring efforts, as the company exports some 300,000 vehicles from Mexico to the US each year.
Q: How did Toyota’s sales perform in October?
A: Toyota’s global sales increased by 1.4 per cent to mark the first rise in five months in October.
