|
Nissan Cars
|
|
Tuesday, 21 October 2008 23:11 |
In Japan, Nissan will cut output at its plants in Kyushu and Tochigi, above, for several months. The Tochigi plant
makes 95 percent of the Infinitis sent to North America.(Katsumi Kasahara/The Associated Press)
TOKYO: Nissan Motor said Tuesday that it would cut production in Japan, Britain and Spain in response to falling demand around the world as fears of a global economic slowdown prompt consumers to delay car purchases.
Nissan, in which the French automaker Renault holds a 44 percent stake, will cut production by a total 65,000 vehicles at its plants in Kyushu and Tochigi from November to March. The company had already reduced production by 10,000 vehicles in Tochigi starting in September.
Nissan had planned total domestic production of 1.39 million vehicles for the business year through March 2009.
The global slowdown in car sales has spared few automakers, with rivals of Nissan also closing or slowing factory lines across many regions.
Hyundai Motor, the largest South Korean carmaker, said Monday that it would reduce its vehicle output in the United States by about 15,000 units because inventories were piling as a result of weakening demand there. From October 24 until the end of this year, Hyundai will suspend operations at its plant in Montgomery, Alabama, intermittently for 11 days, mostly on holidays and Fridays.
Nissan's plant at Tochigi makes 95 percent of the Infiniti models exported to North America, while the Kyushu plant makes sports utility vehicles like the Murano.
Nissan's sales in the United States in September plunged 34 percent from a year earlier to 59,565 vehicles.
Nissan had said previously that it would halt production at its main European plant, in Sunderland, England, for two weeks and shorten working days for three weeks from late October to November because of a slide in sales of the Micra and the Note.
At its Barcelona plant, where Nissan said last week that it would cut 1,680 jobs, the company will stop production for one week and shorten hours for eight weeks to trim output of the Pathfinder, the Navara and the Primastar.
The company declined to say whether it planned to revise its global production target at the announcement of earnings results on Oct. 31 for the April-September first half.
Carlos Tavares, executive vice president, said this month that Nissan was still on track to meet its sales target of 3.9 million vehicles this year. Nissan's global sales were up 5 percent in the first half, compared with an annual growth target of 3.5 percent.
Hyundai, which reports quarterly results Thursday, is expected to post a 60 percent plunge in profit, hit by union-led strikes and higher overseas sales-related costs because of a weakening South Korean currency.
Demand for higher-end models is slowing in the South Korean market, analysts said. But Hyundai may be able to benefit from the world's rising appetite for smaller, more affordable cars.
"Hyundai is likely to face more serious problems next year as the impact of the financial crisis on the economy will get stronger," said Choi Dae Sik, an analyst at HI Investment & Securities. "The U.S. and European markets, where Hyundai just started selling more higher-end models, are shrinking. Emerging markets are not as promising as they used to be."
Union workers at Hyundai have staged 12 partial strikes beginning on July 2 during wage negotiations, costing the company 44,645 vehicles in lost output, according to company data.
A weaker won, which usually bolsters Hyundai's sales and earnings from exports, may not have helped in the third quarter because the fall in the won, the worst-performing Asian currency this year, increased warranty provision costs for sales abroad.
© 2008 IHT.com. All Rights Reserved.
|
0 Comments