Nissan’s Mexican plant will halt production for three days this month to reduce inventories amid low US demand and lower its production goal for 2003, Reuters reported.
Go deeper with GlobalData
“There is a significant inventory because we are exporting less to the United States, which is now depressed due to a recession climate and the war,” Nissan Mexico spokesman Diego Arrazola told Reuters.
Reuters said that Nissan had planned to manufacture 355,000 vehicles this year at its two central Mexico plants, up from last year’s production of 329,000.
In March Nissan produced 24,056 vehicles compared to 24,931 in March 2002, according to Mexican Automotive Industry Association (AMIA) figures cited by Reuters which noted that March exports reached 9,022 vehicles, compared with 10,596 in the same month last year.
“We are going to revise the production target but we still don’t know by how much,” Arrazola told the news agency. Workers at the Aguascalientes plant agreed to a work stoppage for three days around April 25, he added.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataCiting AMIA figures, Reuters said Mexico’s car industry produced 131,970 vehicles in March, down 11.9% from the year-ago period, in the seventh consecutive month of dropping production rates.
About 60% of Nissan’s locally produced vehicles are sold in the Mexican market and the rest are exported mainly to the United States and Canada, Reuters added.
