Nissan (NSANY) Plans to Decrease Vehicle Production in China

Per Reuters, Nissan Motor Company will slash vehicle production in China to survive the slackening economy. Over the three-month period beginning in December, the company is likely to reduce initial vehicle production by 30,000 units. However, the planned production target for the three months is not known yet. From December 2017 to February 2018, Nissan produced 400,000 units in China.

Reportedly, the Japanese automaker has plans to cut production at three of its factories in China, including plants in Dalian and Zhengzhou. The Dalian hub manufactures Nissan’s well-known Qashqai and Infiniti QX50 SUV crossover models, while X-Trail SUV crossover and Venucia models are manufactured at the Zhengzhou plant.

China is the second-largest auto market for Nissan, having contributed one-fourth of the company’s annual global sales. In 2017, the company sold 1.5 million vehicles in China and has set a target to sell 2.6 million units by the end of 2022. Earlier in August, the company announced its plans to expand its vehicle manufacturing capacity in China by 40%. For this, the company planned to invest $900 million, of which, $8.73 billion will be allocated to expand its footprint in China.