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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] Nissan Motor plans to slightly reduce production at its Kyushu plant in Japan as logistics disruptions intensify following the effective closure of the Strait of Hormuz due to the conflict involving Iran, Nikkei reported on March 17.
According to the report by Nikkei Asia, Nissan will cut production by about 1,200 units this month at its plant in Fukuoka Prefecture, Kyushu.
The production cuts will reportedly affect models not primarily exported to the Middle East.
The move comes as shipments of key export models to the Middle East have been delayed, leading to storage shortages. To secure space, Nissan is reducing output of vehicles not destined for the region, the report said.
Nissan’s Fukuoka plant produces around 500,000 vehicles annually, including the minivan Serena and sport utility vehicles such as the X-Trail and Rogue.
At a nearby subsidiary plant operated by Nissan Shatai, the company manufactures the large SUV Patrol, a key export model for the Middle East.
However, due to recent geopolitical tensions in the region, Nissan has been unable to ship Patrol vehicles to the Middle East and is currently storing completed units domestically.
Given the Patrol’s strong profitability and demand, Nissan has opted not to cut its production. Instead, the company plans to reduce output of less profitable models to free up storage capacity.
Earlier, Toyota Motor was also reported to have decided to cut production of about 20,000 vehicles for the Middle East market through this month.
알파경제 Kim Jisun Reporter(stockmk2020@alphabiz.co.kr)
