Nissan Motor on Wednesday said it would axe another 78,000 units from Japanese production from January 2009.

“This further reduction is necessary to manage inventory levels and ensure a balanced production supply, in response to continued declines in global vehicle sales,” the automaker said in a statement.

It will have a number of non-production days and reduce line speed at its Tochigi, Kyushu and Oppama car assembly plants and at its Yokohama and Iwaki engine plants. Iwaki’s VQ engine assembly line will be reduced to one shift from mid-January.

Nissan also plans to axe 500 temporary workers during the first quarter.

The company had said in mid-November it would reduce the number of temporary jobs from 2,000 to 500 by the end of this year.

The company has now cut domestic production by around 16% or 225,000 vehicles for fiscal 2008/9 compared with an original target of about 1.4m.

Domestic Nissan vehicle sales fell 15.5% in October to 41,801 units while US November sales were off 42.2% to 46,605 units.