Nissan Looks to Stem the Flow in Japan, Eyes Production Changes in America
Still sidelined by the coronavirus pandemic in North America and suffering from supply chain and demand issues in its Japanese home base, Nissan is prepared to stem domestic output by 70 percent in May, Reuters reports.
The unconfirmed production cut won’t be a single-month affair, either. On this side of the Pacific, it seems Nissan brass want birds of a feather to flock together, with possible changes incoming at the automaker’s two American vehicle assembly plants.
But back to that domestic situation. As demand in Europe and North America dwindles amid severe and widespread lockdown orders, Nissan’s Japanese manufacturing capacity finds itself grossly oversized for the job at hand. Feeding the Japanese market can be accomplished with a fraction of the output. Hoping to avoid a scenario like that seen with Hyundai, documents seen by Reuters show the automaker will cut production by 70 percent in May and 43 percent in June.
In this continent, changes could be afoot at the company’s Mississippi and Tennessee assembly plants. Citing supplier sources, Automotive News claims Nissan wants to move around a couple of models. The Murano would move from its current home at Canton Assembly to Smyrna Assembly, where it would find a place alongside the Rogue and Pathfinder. While the automaker was expected to consolidate Altima production at one site (Canton), sources now say that plan’s on hold due to the unexpected arrival of COVID-19 and all its baggage.
A Nissan spokesperson did not confirm the report, saying only that the company regularly studies a number of scenarios related to production efficiency.
Legacygt on Apr 28, 2020
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