Nissan is planning to cut production as much as 20% in North America according to a Nikkei news agency report.
The report says the cutback is designed to address profitability issues in the US, where it has struggled to maintain sales and been adversely impacted by currency movements.
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Cuts are already underway at two assembly plants in the US and three in Mexico, according to the Nikkei, with workers laid off for around two days a week. The report adds that lines will slow to the point where output drops roughly 10% to 20% on the year by summer. It also says parts suppliers have been informed of the reductions.
Nissan is forecasting a further drop to operating profit in the current fiscal year following a 22.6% decline in fiscal year 2017 (year to March 31, 2018).
Analysts note that Nissan has focused on building volume and share in the US market, but that approach led to low-margin sales and incentives that eroded underlying profitability.
The US market accounted for 28% of Nissan's worldwide sales of 5.77m units for the year ended March 31.
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